ABC Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (market-related value) Projected benefit obligation Pension asset/liability Prior service cost OCI-LOSS As a result of the operation of the plan during 2021, the actuary provided the following additional data for 2021. Service cost Actual return on plan assets Amortization of prior service cost Contributions $270,000 340,000 70,000 Cr. 90,000 39,000 Benefits paid retirees Settlement rate Expected return on plan assets Average remaining service life of active employees $45,000 27,000 12,000 65,000 41,000 7% 8% 10 years a. Compute pension expense for ABC Corp. for the year 2021 by preparing a pension worksheet that shows the journal entry for pension expense.
