The following information is available for the pension plan of Radcliffe Company for the year 2014.Actual and expected return on plan assets …… $ 15,000Benefits paid to retirees …………. 40,000Contributions (funding) …………. 90,000Interest/discount rate …………… 10%Prior service cost amortization ……….. 8,000Projected benefit obligation, January 1, 2014 ….. 500,000Service cost ……………… 60,000Instructions(a) Compute pension expense for the year 2014.(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2014.View Solution:
The following information is available for pension of Radcliffe