"Instructions

$($Round to the nearest dollar$)$

$($a$)$ Determine the components of pension expense that the company would recognize in $2010.($With only one year involved, you need not prepare a worksheet.$)$

$($b$)$ Prepare the journal entry to record the pension expense and the company$$s funding of the pension plan in $2010.$

$($c$)$ Compute the amount of the $2010$ increase$/$decrease in gains or losses and the amount to be amortized in $2010$ and $2011.$

$($d$)$ Indicate the pension amounts reported in the financial statement as of December $31,2010."$

P$20-3($Pension Expense, Journal Entries, Amortization of Loss$)$

Paul Dobson Company sponsors a defined benefit plan for its $100$ employees. On January $1,2010,$ the company$$s actuary provided the following information.

Accumulated other comprehensive loss $($PSC$)$ $$150,000$

Pension plan assets $($fair value and market$-$related asset value$)200,000$

Accumulated benefit obligation $260,000$

Projected benefit obligation $350,000$

The average remaining service period for the participating employees is $10\mathrm{.}5$ years. All employees are expected to receive benefits under the plan. On December $31,2010,$ the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $$52,000$; the projected benefit obligation was $$452,000$; fair value of pension assets was $$276,000$; the accumulated benefit obligation amounted to $$365,000.$ The expected return on plan assets and the discount rate on the projected benefit obligation were both $10\%.$ The actual return on plan assets is $$11,000.$ The company$$s current year$$s contribution to the pension plan amounted to $$65,000.$ No benefits were paid during the year.