E19.2 (LO 1,2,3) (Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization $ 90,000 105,000 10,000 Actual and expected return on plan assets Benefits paid 64,000 40,000 Plan assets at January 1, 2025 640,000 Projected benefit obligation at January 1, 2025 700,000 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate 150,000 10% Instructions Compute the pension expense for the year 2025. E19.3 (LO 1, 2, 3) (Preparation of Pension Worksheet) Using the information in E19.2, prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025, balances, and the journal entry recording pension expense.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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E19.2 (LO 1,2,3) (Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2025.
Service cost
Contribution to the plan
Prior service cost amortization
$ 90,000
105,000
10,000
Actual and expected return on plan assets
Benefits paid
64,000
40,000
Plan assets at January 1, 2025
640,000
Projected benefit obligation at January 1, 2025
700,000
Accumulated OCI (PSC) at January 1, 2025
Interest/discount (settlement) rate
150,000
10%
Instructions
Compute the pension expense for the year 2025.
E19.3 (LO 1, 2, 3) (Preparation of Pension Worksheet) Using the information in E19.2, prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025,
balances, and the journal entry recording pension expense.
Transcribed Image Text:E19.2 (LO 1,2,3) (Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization $ 90,000 105,000 10,000 Actual and expected return on plan assets Benefits paid 64,000 40,000 Plan assets at January 1, 2025 640,000 Projected benefit obligation at January 1, 2025 700,000 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate 150,000 10% Instructions Compute the pension expense for the year 2025. E19.3 (LO 1, 2, 3) (Preparation of Pension Worksheet) Using the information in E19.2, prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025, balances, and the journal entry recording pension expense.
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