Reference no: EM131132512

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:

Projected benefit obligation

Balance, January 1 $150,000,000

Service cost ...... 25,000,000

Internet cost ..... 15,000,000

Benefit paid ... (12,000,000)

Balance, December 31 $178,000,000

Plan assets

Balance, January 1 $90,000,000

Actual return on plan assets .11,000,000

Contribution ..... 23,000,000

Benefit paid . (12,000,000)

Balance, December 31 $112,000,000

The expected long-term return on plan assets is 10%. There were no other relevant data for the year.

Required:

1) Determine Burrito's pension expense for the year.

2) Prepare the journal entries to record the pension expense and funding for the year.