Question

Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan...

Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.

2020

2021

Plan assets (fair value), December 31 $754,920 $916,920
Projected benefit obligation, January 1 756,000 864,000
Pension asset/liability, January 1 151,200 Cr. ?
Prior service cost, January 1 270,000 259,200
Service cost 64,800 97,200
Actual and expected return on plan assets 25,920 32,400
Amortization of prior service cost 10,800 12,960
Contributions (funding) 124,200 129,600
Accumulated benefit obligation, December 31 540,000 594,000
Interest/settlement rate 8 % 8 %

Compute pension expense for 2020 and 2021.

Pension expense for 2020

$

Pension expense for 2021

$

Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

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