Hanson Ltd. sponsors a defined benefit pension plan for its employees. On January 1, 2022, the following balances related to this plan.

As a result of the operation of the plan during 2022, the actuary provided the following additional data on December 31, 2022.

Service cost for 2022 .............................................. £108,000
Discount (interest) rate .................................................... 9%
Actual return on plan assets in 2022 ........................ 48,000
Contributions in 2022 ............................................... 133,000
Benefits paid retirees in 2022 .................................... 85,000

Instructions

Using the preceding data, compute pension expense for Hanson Ltd. for the year 2022 by preparing a pension worksheet that shows the journal entry for pension expense.

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Plan assets (fair value) £520,000 Defined benefit obligation 700,000 Pension asset/liability 180,000 Cr. Accumulated net loss 91,000