The following information is available for the pension plan of Kiley Company for the year 2008.
Actual and expected return on plan assets .....$ 12,000
Benefits paid to retirees ............40,000
Contributions (funding) ............95,000
Interest/discount rate ...............10%
Prior service cost amortization ............8,000
Projected benefit obligation, January 1, 2008 ...500,000
Service cost ...................60,000
Instructions
(a) Compute pension expense for the year 2008.
(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2008.