Reference no: EM132655895
Question - Nick Inc. sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan
Projected benefit obligation (1/1/2020) $625,000
Plan Assets (1/1/2020) $550,000
Prior Service Cost (Plan Amended) (1/1/2020) $228,000
Accumulated OCI (G/L)-Dr. (1/1/2020) $92,000.
Settlement & Expected return Rate (12/31/2020) 10%
Service Cost (12/31/2020) $85,000
Contributions (funding) (12/31/2020) $120,000
Actual Return on plan Assets (12/31/2020) $44,000
Benefits to retirees (12/31/2020) $110,000
Average Service Life of all covered employees in Years (12/31/2020) 10 years
Required -
1. Compute pension expense for 2019.
2. Prepare Journal Entry for Pension Plan expense 2019.