Esented below is information related to Stage Department Stores, Inc. pension plan for 2015.
|
Service cost
|
$550,000
|
|
Funding contribution for 2015
|
530,000
|
|
Settlement rate used in actuarial computation
|
10%
|
|
Expected return on plan assets
|
9%
|
|
Amortization of PSC (due to benefit increase)
|
90,000
|
|
Amortization of unrecognized net gains
|
48,000
|
|
Projected benefit obligation (at beginning of period)
|
540,000
|
|
Fair value of plan assts (at beginning of period)
|
360,000
|
Instructions
(a) Compute the amount of pension expense to be reported for 2015. (Show computations.)
(b) Prepare the journal entry to record pension expense and the employer's contribution for 2015.