(26 points) Presented below is information related to the pension plan for Colette Inc. for the...

  

 

 
 
 

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(26 points) Presented below is information related to the pension plan for Colette Inc. for the year 2021. 1. The projected benefit obligation at the beginning of the year is $700,000, and the settlement rate is 6%. 2. 3. The fair value of pension plan assets at the beginning of the year is $650,000, and the expected return is 9%. The actual return on pension plan assets equals $48,000. At the beginning of the year, Colette has Accumulated OCI (loss) of $90,000. Any amortization of unrecognized net loss is recognized on a straight-line basis over the average remaining service-life of the employees, which equals 8 years. 4. At the beginning of the year, Colette has Accumulated OCI (prior service cost) of $128,000. The company amortizes the prior service cost on a straight-line basis over the average remaining service-life of the employees, which equals 8 years. 5. The service cost related to pension expense is $180,000. 6. The contributions made to the pension fund in 2021 were $151,000. 7. The benefits paid out to retirees in 2021 were $79,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2021. (b) Prepare the journal entry to record pension expense for 2021. (26 points) Presented below is information related to the pension plan for Colette Inc. for the year 2021. 1. The projected benefit obligation at the beginning of the year is $700,000, and the settlement rate is 6%. 2. 3. The fair value of pension plan assets at the beginning of the year is $650,000, and the expected return is 9%. The actual return on pension plan assets equals $48,000. At the beginning of the year, Colette has Accumulated OCI (loss) of $90,000. Any amortization of unrecognized net loss is recognized on a straight-line basis over the average remaining service-life of the employees, which equals 8 years. 4. At the beginning of the year, Colette has Accumulated OCI (prior service cost) of $128,000. The company amortizes the prior service cost on a straight-line basis over the average remaining service-life of the employees, which equals 8 years. 5. The service cost related to pension expense is $180,000. 6. The contributions made to the pension fund in 2021 were $151,000. 7. The benefits paid out to retirees in 2021 were $79,000. Instructions (a) Determine the pension expense to be reported on the income statement for 2021. (b) Prepare the journal entry to record pension expense for 2021.

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