Buhl Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, the following balances relate to this plan.

Plan assets ........... $480,000

Defined benefit obligation ..... 625,000

Pension asset/liability ...... 45,000

Unrecognized past service cost .. 100,000

As a result of the operation of the plan during 2012, the following additional data are provided by the actuary.

Service cost for 2012 ................ $90,000

Discount rate ..................... 9%

Actual return on plan assets in 2012 ............ 57,000

Amortization of past service cost ........... 19,000

Expected return on plan assets ............ 52,000

Unexpected loss from change in defined benefit obligation,

due to change in actuarial predictions .......... 76,000

Contributions in 2012 ................. 99,000

Benefits paid retirees in 2012 .............. 85,000

Instructions

(a) Using the data above, compute pension expense for Buhl Corp. for the year 2012 by preparing a pension worksheet that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

(b) At December 31, 2012, prepare a schedule reconciling the funded status of the plan with the pension amount reported on the statement of financial position.