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The following information is available for the pension plan of Radcliffe Company for the year 2014.
Actual and expected return on plan assets $ 15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10 %
Prior service cost amortization 8,000
Projected benefit obligation, January 1, 2014 500,000
Service cost 60,000
Instructions:
Compute pension expense for the year 2014.
Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2014.
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