Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017:

	2016	2017
Service cost	$180,000	$190,000
Projected benefit obligation (1/1)	135,000	323,100
Plan assets (1/1)	135,000	327,100
Company contribution (funded 12/31)	184,000	200,000
Discount rate	6%	6%
Expected long-term (and actual) rate of return on plan assets	6%	6%

There are no other components of Baron’s pension expense.

Required:

1.	Compute the amount of Baron’s pension expense for 2016 and 2017.
2.	Prepare the journal entries to record the pension expense for 2016 and 2017.

Answer rating: 100% (QA)

Answer Explanation 1 2016 2017 Service Cost 180000 190000 Add Interest cost ... View the full answer