Beaver Corporation has a defined benefit pension plan. Beaver received the following information for the...
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Accounting
Beaver Corporation has a defined benefit pension plan. Beaver received the following information for the current calendar year:
| Projected benefit obligation | |
| Balance, January 1 | $150,000,000 |
| Service cost | 25,000,000 |
| Interest cost | 15,000,000 |
| Benefits paid | (12,000,000) |
| Balance, December 31 | $178,000,000 |
| Plan assets | |
| Balance, January 1 | $90,000,000 |
| Actual return on plan assets | 11,000,000 |
| Contribution | 23,000,000 |
| Benefits paid | (12,000,000) |
| Balance, December 31 | $112,000,000 |
The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required: 1. Determine Beaver's pension expense for the year. 2. Prepare the journal entries to record the pension expense and funding for the year.
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