The following facts apply to the pension plan of Boudreau Inc. for the year 2020. Plan assets, January 1, 2020 $490,000 Projected benefit obligation, January 1, 2020 490,000 Settlement rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Instructions Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.
The following facts apply to the pension plan of Boudreau Inc. for the year 2020. Plan assets, January 1, 2020 $490,000 Projected benefit obligation, January 1, 2020 490,000 Settlement rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Instructions Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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Question
The following facts apply to the pension plan of Boudreau Inc. for the year 2020.
| Plan assets, January 1, 2020 |
$490,000
|
| Projected benefit obligation, January 1, 2020 |
490,000
|
| Settlement rate |
8%
|
| Service cost |
40,000
|
| Contributions (funding) |
25,000
|
| Actual and expected return on plan assets |
49,700
|
| Benefits paid to retirees |
33,400
|
Instructions
Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the
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