Mantle Company sponsors a defined-benefit pension plan. The following information related to the pension plan is available for 2008.
2008
Plan assets (fair value), January 1 ........$380,000
Projected benefit obligation, January 1 ........600,000
Pension liability, January 1 ...........220,000
Prior service cost, January 1 ............180,000
Service cost ..................60,000
Actual and expected return on plan assets .......24,000
Amortization of prior service cost ..........10,000
Contributions (funding) ............110,000
Interest/settlement rate ...............9%
Instructions
(a) Compute pension expense for 2008.
(b) Prepare the journal entry (ies) to record the pension expense and the company’s funding of the pension plan for 2008.