(Pension Worksheet) Larson Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2011, the following balances related to this plan.
Plan assets (market-related value) $270,000
Projected benefit obligation 340,000
Pension asset/liability 70,000 Cr.
Prior service cost 90,000
As a result of the operation of the plan during 2011, the actuary provided the following additional data at December 31, 2011.
(a) Compute pension expense for Larson Corp. for the year 2011 by preparing a pension worksheet that shows the journal entry for pension expense.
(b) Indicate the pension amounts reported in the financialstatements.