Intermediate Accounting: P20-12 Cramer Corp. sponsors a defined-benefit pension plan

Intermediate Accounting
P20-12 Pension Worksheet
Cramer Corp. sponsors a defined-benefit pension plan for its employees.
On January 1, 2012, the following balances related to this plan.
Plan assets (market-related value) 270,000
Projected benefit obligation 360,000
Pension asset/liability 90,000 Cr.
Prior service cost 45,000
OCIā€”Loss 39,000

As a result of the operation of the plan during 2012, the actuary provided the following additional data at December 31, 2012.
Service cost for 2012 54,000
Actual return on plan assets in 2012 27,000
Amortization of prior service cost 12,000
Contributions in 2012 70,000
Benefits paid retirees in 2012 41,000
Settlement rate 7%
Expected return on plan assets 8%
Average remaining service life of active employees 10 years

(a) Compute pension expense for Cramer Corp. for the year 2012 by preparing a pension worksheet that shows the journal entry for pension expense.
(b) Indicate the pension amounts reported in the financial statements.
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