Solution-Compute the amount of baron pension expense

Compute the amount of baron pension expense

Reference no: EM133160070

Question - 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	$150,000	$160,000
Projected benefit obligation (1/1)	112,500	269,250
Plan assets (1/1)	112,500	275,750
Company contribution (funded 12/31)	156,500	170,000
Discount rate	6%	6%
Expected long-term (and actual) rate of return on plan assets	6%	6%

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: EM133160070

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Compute the amount of baron pension expense

Reference no: EM133160070

Reference no: EM133160070

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