The following information is available for the pension plan of Radcliffe Company for the year 2012.
- Actual and expected return on plan assets $15,000
- Benefits paid to retirees $40,000
- contributions (funding) $90,000
- interest/discount rates 10%
- prior service cost amortization $8,000
- projected benefit obligation, Jan 1, 2012 $500,000
- Service cost $60,000
Instructions
a) compute pension expense for the year 2012
b) prepare the journal entries to record pension expense and the employer's contribution to the pension plan in 2012