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ACC- Gordon Company sponsors a defined benefit pension plan




Question;Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.2010 2011Plan assets (fair value), December 31 $699,000 $849,000Projected benefit obligation, January 1 700,000 800,000Pension asset/liability, January 1 140,000Cr?Prior service cost, January 1 250,000 240,000Service cost 60,000 90,000Actual and expected return on plan assets 24,000 30,000Amortization of prior service cost 10,000 12,000Contributions (funding) 115,000 120,000Accumulated benefit obligation, December 31 500,000 550,000Interest/settlement rate 9% 9%a) Compute pension expense for 2010 and 2011.B) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.


Paper#44250 | Written in 18-Jul-2015

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