Reference no: EM13847384

Pension data for Sam Adams Inc. include the following for the current calendar year: Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, $400,000.

January 1:

PBO                                                             3,000,000

ABO                                                             2,000,000

Plan assets                                                   3,200,000

Amortization of prior service cost                 30,000

Amortization of net gain                               7,000

December 31:

Cash contributions to pension fund              $275,000

Benefit payments to retirees                         310,000

Required: 1) Determine pension expense for the year. 2) Prepare the journal entries to record pension expense and funding for the year.