Carmichael Corporation has had a defined benefit pension plan for three decades.Two years ago,the company improved the benefits at a cost of $2,800,000.Pension plan assets were $84,000,000 while pension obligations were $76,000,000 at the beginning of the year.For the current year,Carmichael's pension plan incurred current service cost of $6,400,000 and interest of $8,600,000.The pension's assets earned $9,000,000,which is $400,000 below expectations.There were no actuarial gains or losses for the year.
Required:
a) Compute the pension expense for the year.
b) Record the journal entries for Carmichael's pension plan.

Question

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The Answer of Carmichael Corporation has had a defined benefit pension plan for three decades.Two years ago,the company improved the benefits at a cost of $2,800,000.Pension plan assets were $84,000,000 while pension obligations were $76,000,000 at the beginning of the year.For the current year,Carmichael's pension plan incurred current service cost of $6,400,000 and interest of $8,600,000.The pension's assets earned $9,000,000,which is $400,000 below expectations.There were no actuarial gains or losses for the year.
Required:
a) Compute the pension expense for the year.
b) Record the journal entries for Carmichael's pension plan.

Carmichael Corporation Has Had a Defined Benefit Pension Plan for Three