E20-4B (Basic Pension Worksheet) The following facts apply to the pension plan of I-Pass Corporation for the year 2014.
Plan assets, January 1, 2014 $950,000
Projected benefit obligation, January 1, 2014 950,000
Settlement rate 6%
Service cost 75,000
Contributions (funding) 10,000
Actual and expected return on plan assets 40,600
Benefits paid to retirees 42,200
Using the preceding data, compute pension expense for the year 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2014 and the year-end balances in the related pension accounts.