Question
Tigers, Inc. sponsors a defined-benefit pension plan for its employees.On January 1, 2015, the following balances related to this plan. Plan assets (fair value) $650,000
Tigers, Inc. sponsors a defined-benefit pension plan for its employees.On January 1, 2015, the following balances related to this plan.
Plan assets (fair value) $650,000
Projected benefit obligation 700,000
Pension asset/liability 50,000 Cr.
Prior service cost 95,000
OCI - Loss 85,000
As a result of the operation of the plan during 2015, the actuary provided the following additional data at December 31, 2015.
Service cost for 2015$ 70,000
Actual return on plan assets in 201555,000
Amortization of prior service cost 15,000
Contributions in 2015 115,000
Benefits paid retirees in 201580,000
Settlement rate7%
Expected return rate8%
Average remaining service life of active employees 10 years
Instructions
(a) Compute pension expense for Tigers, Inc. for the year 2015 by preparing a pension worksheet.
(b)Prepare the journal entry for pension expense.
(c)Solution must be prepared in excel.
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