The following information is available for the pension plan of Radcliffe Company for the year 2020.

Actual and expected return on plan assets.....................$ 15,000
Benefits paid to retirees........................................................40,000
Contributions (funding).........................................................90,000
Interest/discount rate................................................................10%
Prior service cost amortization...............................................8,000
Projected benefit obligation, January 1, 2020..................500,000
Service cost.............................................................................60,000

Instructions

a. Compute pension expense for the year 2020.

b. Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020.