Question

Brownie Company sponsors a defined benefit pension plan for its employees. On January1, 2020, the following balances relate to this plan.

Plan assets		$786,000
Projected benefit obligation		897,000
Pension asset/liability		111,000	Cr.
Accumulated OCI (PSC)		92,000	Dr.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost		$91,000
Settlement rate, 6%
Actual return on plan assets		49,000
Amortization of prior service cost		31,000
Expected return on plan assets		45,000
Unexpected loss from change in projected benefit   due to change in actuarial predictions		72,000
Contributions		104,000
Benefits paid retirees		96,000

Using the data above, compute pension expense for Brownie Company for the year 2020 by preparing a pension worksheet.

Answer 1