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The following facts apply to the pension plan of Boudreau Inc. for the year 2020. Plan assets, January 1, 2020 $490,000 Projected benefit obligation, January 1, 2020 490,000 Settlement rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Instructions Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.

The following facts apply to the pension plan of Boudreau Inc. for the year 2020. Plan assets, January 1, 2020 $490,000 Projected benefit obligation, January 1, 2020 490,000 Settlement rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Instructions Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.

FINANCIAL ACCOUNTING
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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The following facts apply to the pension plan of Boudreau Inc. for the year 2020.

Plan assets, January 1, 2020
$490,000
Projected benefit obligation, January 1, 2020
490,000
Settlement rate
8%
Service cost
40,000
Contributions (funding)
25,000
Actual and expected return on plan assets
49,700
Benefits paid to retirees
33,400

Instructions

Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.

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