1.

1. Glory Plc offers a defined benefit plan for its employees. On January 1, 2018, the following balances relate to this plan. Plan asset $ 500,000

Projected benefit obligation 600,000

Pension asset/liability 100,000

Accumulated OCI (PSC) 200,000

The following additional data are given:

Service cost $100,000

Actual return .. 65,000

Expected return on plan assets 10%

Amortization of Prior service cost (PSC) .. 20,000

Settlement rate 8%

Unexpected loss from change in projected benefit obligation 75,000

Contributions . 100,000

Benefit paid 90,000

Required:

1. Compute the pension expense for 2018.
2. Prepare a pension worksheet.
3. Prepare journal entries on 31^stDecember, 2018.