The following information is available for the pension plan of Radcliffe Company for the year 2014.

Actual and expected return on plan assets ...... $ 15,000

Benefits paid to retirees ............. 40,000

Contributions (funding) ............. 90,000

Interest/discount rate ............... 10%

Prior service cost amortization ........... 8,000

Projected benefit obligation, January 1, 2014 ..... 500,000

Service cost .................. 60,000

Instructions

(a) Compute pension expense for the year 2014.

(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2014.