The following facts apply to the pension plan of I-Pass Corporation for the year 2014. Plan assets,

Question:

The following facts apply to the pension plan of I-Pass Corporation for the year 2014.

Plan assets, January 1, 2014 ............$950,000

Projected benefit obligation, January 1, 2014 ..... 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 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2014 and the year-end balances in the related pension accounts.

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