Question

Farber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2010, the following balances related to this plan.
Plan assets.................................................................£520,000
Defined benefit obligation..........................................725,000
Pension asset/liability....................................................33,000 Dr.
Unrecognized past service cost.....................................81,000
Unrecognized net gain or loss .......................................91,000 Dr.
As a result of the operation of the plan during 2010, the actuary provided the following additional data at December 31, 2010.
Service cost for 2010............................................................ £108,000
Discount rate...................................................................................9%
Expected return rate...................................................................... 10%
Actual return on plan assets in 2010..........................................48,000
Amortization of past service cost...............................................25,000
Contributions in 2010...............................................................138,000
Benefits paid retirees in 2010 ...................................................85,000
Average remaining service life of active employees..............10 years
Accumulated benefit obligation at 12/31/10...........................671,000

Instructions
Using the preceding data, compute pension expense for Farber Corp. for the year 2010 by preparing a pension worksheet that shows the journal entry for pension expense.



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  • CreatedJune 17, 2013
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