Question

Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan.

Plan assets (market-related value)		$536,000
Projected benefit obligation		652,000
Pension asset/liability		116,000	Cr.
Prior service cost		86,000
Net gain or loss (debit)		99,000

As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020.

Service cost		$124,000
Settlement rate, 9%; expected return rate, 10%
Actual return on plan assets		49,000
Amortization of prior service cost		26,000
Contributions		144,000
Benefits paid retirees		88,000
Average remaining service life of active employees		10	years

1.Using the preceding data, compute pension expense for Bridgeport Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)

2. Use the market-related asset value to compute the expected return and for corridor amortization.

Expected return		$
Corridor amortization		$

Answer 1