Chen Group sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances related to this plan (amounts in thousands).
Plan assets (fair value)..................................¥270,000
Defined benefit obligation..............................340,000
Pension asset/liability......................................70,000 Cr.
OCI-Loss.................................................39,000
As a result of the operation of the plan during 2019, the actuary provided the following additional data at December 31, 2019.
Service cost for 2019..................................¥45,000
Actual return on plan assets in 2019..................27,000
Contributions in 2019...................................65,000
Benefits paid retirees in 2019..........................41,000
Discount (interest) rate.....................................7%
Instructions
a. Compute pension expense for Chen Group for the year 2019 by preparing a pension worksheet that shows the journal entry for pension expense.
b. Indicate the pension amounts reported in the financial statements.