Latoya Company provides the following selected information related to its defined benefit pension plan for 2019.
Pension asset/liability (January 1)...............................................$ 25,000 Cr.
Accumulated benefit obligation (December 31)...............................400,000
Actual return on plan assets........................................................67,500
Contributions (funding) in 2019...................................................50,000
Discount (interest) rate...............................................................10%
Defined benefit obligation (January 1).........................................700,000
Service cost..........................................................................80,000
Instructions
a. Compute pension expense and prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019. Preparation of a pension worksheet is not required. Benefits paid in 2019 were $35,000.
b. Indicate the pension-related amounts that would be reported in the company's statement of comprehensive income and statement of financial position for 2019.