AMA Corporation has a defined benefit pension plan. At January 1,2010,the following balances exist:
For the year ended December 31,2010,the current service cost as determined by an appropriate actuarial cost method was $280,000. A change in actuarial assumptions created a gain of$16,000 in 2010. The expected return on plan assets was $67,200; however,the actual return is $63,700. The expected period of full eligibility at January 1,2010 (i.e.,the vesting period)is 8 years,while the expected average remaining service life is 28 years. AMA paid $227,700 to the pension trustee in December 2010. The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2010.

Question

AMA Corporation has a defined benefit pension plan. At January 1,2010,the following balances exist:
  For the year ended December 31,2010,the current service cost as determined by an appropriate actuarial cost method was $280,000. A change in actuarial assumptions created a gain of$16,000 in 2010. The expected return on plan assets was $67,200; however,the actual return is $63,700. The expected period of full eligibility at January 1,2010 (i.e.,the vesting period)is 8 years,while the expected average remaining service life is 28 years. AMA paid $227,700 to the pension trustee in December 2010. The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2010.

Quizplus · Accepted Answer

The Answer of AMA Corporation has a defined benefit pension plan. At January 1,2010,the following balances exist:
  For the year ended December 31,2010,the current service cost as determined by an appropriate actuarial cost method was $280,000. A change in actuarial assumptions created a gain of$16,000 in 2010. The expected return on plan assets was $67,200; however,the actual return is $63,700. The expected period of full eligibility at January 1,2010 (i.e.,the vesting period)is 8 years,while the expected average remaining service life is 28 years. AMA paid $227,700 to the pension trustee in December 2010. The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2010.

AMA Corporation Has a Defined Benefit Pension Plan