Baron Company adopted a defined benefit pension plan 0n January 1, 2018. The following information pertains tothe pension plan for 2019 and 2020:1. Compute the amount of Baron’s pension expense for 2019 and 2020. 2. Prepare the journal entries to record the pension expense for 2019 and 2020. 20192020Service costProjected benefit obligation (1/1)Plan assets (1/1)Company contribution (funded 12/31)$160,000120,000120,000165,000$172,000289,600294,600175,000Discount rate8%8%Expected long-term (and actual) rate ofreturn on plan assets8%8%There are no other components of Baron's pension expense.

2019 2020 Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) $160,000 120,000 120,000 165,000 $172,000 289,600 294,600 175,000 Discount rate 8% 8% Expected long-term (and actual) rate of return on plan assets 8% 8% There are no other components of Baron's pension expense.

2019 2020 Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) $160,000 120,000 120,000 165,000 $172,000 289,600 294,600 175,000 Discount rate 8% 8% Expected long-term (and actual) rate of return on plan assets 8% 8% There are no other components of Baron's pension expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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