E20-4 (Basic Pension Worksheet) The following facts apply to the pension

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E20-4 (Basic Pension Worksheet) The following facts apply to the pension plan of Boudreau Inc. for the
year 2012.

Plan assets, January 1, 2012 $490,000
Projected benefi t obligation, January 1, 2012 490,000
Settlement rate 8%
Service cost 40,000
Contributions (funding) 25,000
Actual and expected return on plan assets 49,700
Benefi ts paid to retirees 33,400

Instructions
Using the preceding data, compute pension expense for the year 2012. As part of your solution, prepare a
pension worksheet that shows the journal entry for pension expense for 2012 and the year-end balances in
the related pension accounts.