Compute the amount of pension expense to be reported

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Reference no: EM131821332

Esented below is information related to Stage Department Stores, Inc. pension plan for 2015.

Service cost

$550,000

Funding contribution for 2015

530,000

Settlement rate used in actuarial computation

10%

Expected return on plan assets

9%

Amortization of PSC (due to benefit increase)

90,000

Amortization of unrecognized net gains

48,000

Projected benefit obligation (at beginning of period)

540,000

Fair value of plan assts (at beginning of period)

360,000

Instructions

(a) Compute the amount of pension expense to be reported for 2015. (Show computations.)

(b) Prepare the journal entry to record pension expense and the employer's contribution for 2015.

Reference no: EM131821332

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