The New Era Inc. has the following pension plan information for the year 2017:

The actual and expected rate of return on plan assets is $16,500, the benefits paid to  retirees are $45,000, the contribution (funding) is 100,000. The interest rate is 9%

 The prior service cost amortization is $9,500. The projected benefit obligation for January 1, 2017 was $475,000 and the service cost was $85,000.

To do:

 1- The pension expense for 2017.

 2- The wage entry to recognize the pension expense and the employer contribution @ 2017.

Answer rating: 100% (QA)

The pension expense for 2017 can be calculated as follows Service cost 8500 ... View the full answer