Reference no: EM13594706

The following information is available for the pension plan of Radcliffe Company for the year 2012.

• Actual and expected return on plan assets $15,000
• Benefits paid to retirees $40,000
• contributions (funding) $90,000
• interest/discount rates 10%
• prior service cost amortization $8,000
• projected benefit obligation, Jan 1, 2012 $500,000
• Service cost $60,000

Instructions
a) compute pension expense for the year 2012
b) prepare the journal entries to record pension expense and the employer's contribution to the pension plan in 2012