Question 2:

Pension data for Goldman Company included the following for the current calendar year:

Service Cost $106,000

PBO, January 1 780,000

Plan Assets, January 1 830,000

Amortization of prior service cost 6,300

Amortization of net loss

Discount rate, 8%

Expected return on plan assets, 10%

Actual return on plan assets, 12%

a.) Determine the pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)

b.) Prepare the journal entry to record the pension expense.