I'm having a hard time figuring out the pension expense for 2016 & 2017: Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017: 2016 2017 Service cost $160,000 $172,000 Projected benefit obligation (1/1) 120,000 289,600 Plan assets (1/1) 120,000 294,600 Company contribution (funded 12/31) 165,000 175,000 Discount rate 8% 8% Expected long-term (and actual) rate of return on plan assets 8% 8% There are no other components of Baron’s pension expense. Required: 1. Compute the amount of Baron’s pension expense for 2016 and 2017. 2. Prepare the journal entries to record the pension expense for 2016 and 2017.
I'm having a hard time figuring out the pension expense for 2016 & 2017: Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017: 2016 2017 Service cost $160,000 $172,000 Projected benefit obligation (1/1) 120,000 289,600 Plan assets (1/1) 120,000 294,600 Company contribution (funded 12/31) 165,000 175,000 Discount rate 8% 8% Expected long-term (and actual) rate of return on plan assets 8% 8% There are no other components of Baron’s pension expense. Required: 1. Compute the amount of Baron’s pension expense for 2016 and 2017. 2. Prepare the journal entries to record the pension expense for 2016 and 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I'm having a hard time figuring out the pension expense for 2016 & 2017:
Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017:
|
|
2016
|
2017
|
| Service cost | $160,000 | $172,000 |
| Projected benefit obligation (1/1) | 120,000 | 289,600 |
| Plan assets (1/1) | 120,000 | 294,600 |
| Company contribution (funded 12/31) | 165,000 | 175,000 |
| Discount rate | 8% | 8% |
| Expected long-term (and actual) |
8% | 8% |
There are no other components of Baron’s pension expense.
Required:
| 1. | Compute the amount of Baron’s pension expense for 2016 and 2017. |
| 2. | Prepare the |
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