Sunday plc sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances related to this plan.

Plan assets: 170,000

Projected benefit obligation: 240,000

Pension asset/liability: 70,000 Cr.

OCILoss: 11,000

As a result of the operation of the plan during 2019, the actuary provided the following additional data at December 31, 2019.

Service cost for 2019: 45,000

Actual return on plan assets in 2019: 17,000

Contribution in 2019: 85,000

Benefits paid retirees in 2019: 10,500

Discount rate: 7%

Changes in actuarial assumptions result in a defined benefit obligation end-of-year

balance of $335,000.

The journal entry to record pension-related amounts for 2019 is:

Select one:

a.

	Dr.	Cr.
Pension Expense	49,900
Cash		49,900

b.

	Dr.	Cr.
Pension Expense		49,900
Other Comprehensive Income (G/L)		49,600
Asset/Liability Gain		59,000
Pension Asset/Liability	73,500
Cash	85,000

c.

	Dr.	Cr.
Pension Expense	49,900
Other Comprehensive Income (G/L)	38,600
Pension Asset/Liability		3,500
Cash		85,000

d.

	Dr.	Cr.
Pension Expense		49,900
Other Comprehensive Income (G/L)		38,600
Pension Asset/Liability	3,500
Cash	85,000

e.

	Dr.	Cr.
Pension Expense	49,900
Other Comprehensive Income (G/L)	49,600
Asset/Liability Gain	59,000
Pension Asset/Liability		73,500
Cash		85,000