Latoya Company provides the following selected information related to its defined benefit pension plan for 2022.

Instructions

a. Compute pension expense and prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2022. Preparation of a pension worksheet is not required. Benefits paid in 2022 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 2022.

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Pension asset/liability (January 1) Accumulated benefit obligation (December 31) 400,000 $ 25,000 Cr. Actual return on plan assets 67,500 Contributions (funding) in 2022 50,000 Discount (interest) rate 10% Defined benefit obligation (January 1) 700,000 Service cost 80,000