The following facts apply to the pension plan of Boudreau plc for the year 2022.

Plan assets, January 1, 2022 ......................................... £490,000
Defined benefit obligation, January 1, 2022 .................. 490,000
Discount (interest) rate ............................................................. 8%
Service cost .......................................................................... 40,000
Contributions (funding) ..................................................... 25,000
Actual return on plan assets ............................................. 39,200
Benefits paid to retirees .................................................... 33,400

Instructions

Using the preceding data, compute pension expense for the year 2022. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2022 and the year-end balances in the related pension accounts.