E20.4B (L0 1,2) (Basic Pension Worksheet)

The following facts apply to the pension plan of I-Pass Corporation for the year 2020:

Plan assets, January 1, 2020 $950,000

Projected benefit obligation, January 1, 20 950,000

Settlement rate 6%

Service cost 75,000

Contributions (funding) 10,000

Actual and expected return on plan assets 40,600

Benefits paid to retirees 42,200

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.