Question: Sotherlin Inc. has a defined contribution plan. It has agreed to pay $275,000 now at the end of 20X4 and another payment of $200,000 at

Sotherlin Inc. has a defined contribution plan. It has agreed to pay $275,000 now at the end of 20X4 and another payment of $200,000 at the end of 20X6 for employees’ services for 20X4. The current interest rate is 5%.

Required:
Prepare the journal entry for the pension expense for 20X4.

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