The following facts apply to the pension plan of Boudreau plc for the year 2019.
Plan assets, January 1, 2019....................................£490,000
Defined benefit obligation, January 1, 2019...................490,000
Discount (interest) rate.................................................8%
Service cost..........................................................40,000
Contributions (funding)............................................25,000
Actual return on plan assets.......................................39,200
Benefits paid to retirees............................................33,400
Instructions
Using the preceding data, compute pension expense for the year 2019. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2019 and the year-end balances in the related pension accounts.