The following information is available for the pension plan of Radcliffe Company for the year 2019.
Interest revenue on plan assets.......................................$ 15,000
Benefits paid to retirees.................................................40,000
Contributions (funding).................................................90,000
Discount (interest) rate.....................................................10%
Defined benefit obligation, January 1, 2019........................500,000
Service cost...............................................................60,000
Instructions
a. Compute pension expense for the year 2019.
b. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019.