Ultra-Home Corporation provides the following information related to its defined-benefit pension…

 
   

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Ultra-Home Corporation provides the following information related to its defined-benefit pension plan for 2014.Pension liability (January 1) …………. $ 500,000Accumulated benefit obligation (December 31) …. 1,250,000Actual and expected return on plan assets ……. 15,000Contributions (funding) in 2014 ………. 210,000Fair value of plan assets (December 31) ………. 960,000Settlement rate …………….. 8%Projected benefit obligation (January 1) ……. 1,500,000Service cost ……………… 165,000Instructions(a) Compute pension expense and prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2014.(b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2014.View Solution:
Ultra Home Corporation provides the following information relate