Van Persie Corp. sponsors a defined-benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2009.

Plan assets (market value) $450,000

Projected benefit obligation 600,000

Pension asset/liability 150,000 Cr.

Van Persie amends the pension plan, effective 1/1/2010, and the actuary informs Van Persie that the Prior Service Cost associated with the amendment equals $90,000.

As a result of the operation of the plan during 2010, the actuary provided the following additional data on December 31, 2010.

Service cost for 2010 $ 75,000

Actual return on plan assets in 2010 45,000

Amortization of prior service cost 20,000

Contributions in 2010 115,000

Benefits paid retirees in 2010 70,000

Settlement rate 7%

Expected return rate 8%

Instructions

(a) Compute pension expense for Van Persie Corp. for the year 2010 by preparing the attached pension worksheet.

(b) Prepare the journal entry for pension expense.

	General Journal Entries						Memo Record
			Other Comprehensive Income
Items	Pension Expense	Cash	Prior Service Cost	Gains/Losses	Pension Asset/Liability		PBO	Plan Assets