Robert Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances related to this plan:
| Plan assets (market related value |
$170,000 |
| Projected benefit obligation |
$340,000 |
| Pension asset/liability |
$170,000 cr. |
| Prior service cost |
$100,000 |
| OCI-Loss |
$39,000 |
As a result of the operation of the plan during 2014, the actuary provided the following additional data at December 31, 2014:
| Service costs for 2014 |
$45,000 |
| Actual return on plan assets in 2014 |
$27,000 |
| Amortization of prior service cost |
$20,000 |
| Contributions in 2014 |
$85,000 |
| Benefits paid retirees in 2014 |
$51,000 |
| Settlement rate |
7% |
| Expected return on plan assets |
8% |
| Average remaining service life of active employees |
10 years |
Instructions:
(a) Compute pension expense for Robert Corp. for the year 2014 by preparing a pension worksheet that shows the journal entry for pension expense.
(b) Indicate the pension amounts reported in the financial statements.