Reference no: EM132597407
Question - Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:
Projected benefit obligation Balance, January 1 $140,000,000
Service cost 20,000,000
Interest cost 11,200,000
Benefits paid (7,000,000)
Balance, December 31 $164,200,000
Plan assets Balance, January 1 $85,000,000
Actual return on plan assets 8,800,000
Contribution 18,000,000
Benefits paid (7,000,000)
Balance, December 31 $104,800,000
The expected long-term return on plan assets is 8%. There were no other relevant data for the year.
Required -
1. Determine Burrito's pension expense for the year.
2. Make the journal entries to record the pension expense and funding for the year.