Solution-Compute the amount of Baron pension expense

Compute the amount of Baron pension expense

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Reference no: EM132891450

Problem - Pension Expense Different Than Funding: Multiple Years - Baron Company adopted a defined benefit pension plan on January 1, 2018. The following information pertains to the pension plan for 2019 and 2020:

	2019	2020
Service cost	$160,000	$172,000
Projected benefit obligation (1/1)	120,000	289,600
Plan assets (1/1)	120,000	294,600
Company contribution (funded 12/31)	165,000	175,000
Discount rate	8%	8%
Expected long-term (and actual) rate of return on plan assets	8%	8%

There are no other components of Baron's pension expense.

Required -

1. Compute the amount of Baron's pension expense for 2019 and 2020.

2. Prepare the journal entries to record the pension expense for 2019 and 2020.

Reference no: EM132891450

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Compute the amount of Baron pension expense

Reference no: EM132891450

Reference no: EM132891450

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