(Pension Worksheet) Hanson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.Check the below image for informationInstructionsUsing the preceding data, compute pension expense for Hanson Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. Use the market-related asset value to compute the expected return and for corridor amortization. Plan assets (market-related value)Projected benefit obligationPension asset/liability$520,000700,000180,000 Cr.81,00091,000Prior service costNet gain or loss (debit)As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017.Service cost$108,000Settlement rate, 9%; expected return rate, 10%Actual return on plan assetsAmortization of prior service costContributions48,00025,000133,00085,00010 yearsBenefits paid retireesAverage remaining service life of active employees

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Answered: Plan assets (market-related value)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Pension Worksheet) Hanson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.

Check the below image for information

Instructions
Using the preceding data, compute pension expense for Hanson Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. Use the market-related asset value to compute the expected return and for corridor amortization.

Plan assets (market-related value)
Projected benefit obligation
Pension asset/liability
$520,000
700,000
180,000 Cr.
81,000
91,000
Prior service cost
Net gain or loss (debit)
As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017.
Service cost
$108,000
Settlement rate, 9%; expected return rate, 10%
Actual return on plan assets
Amortization of prior service cost
Contributions
48,000
25,000
133,000
85,000
10 years
Benefits paid retirees
Average remaining service life of active employees

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