The following facts apply to the pension plan of Boudreau Inc. for the year 2020.

Plan assets, January 1, 2020................................................$490,000
Projected benefit obligation, January 1, 2020.....................490,000
Settlement rate................................................................................8%
Service cost................................................................................40,000
Contributions (funding)............................................................25,000
Actual and expected return on plan assets...........................49,700
Benefits paid to retirees...........................................................33,400

Instructions

Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.