E20-15B (Pension Expense, Journal Entries) Ultra-Home Corporation provides the following information related to its defined-benefit pension plan for 2014. Pension liability (January 1) $ 500,000 Accumulated benefit obligation (December 31) 1,250,000 Actua

E20-15B (Pension Expense, Journal Entries) Ultra-Home Corporation provides the following information related to its defined-benefit pension plan for 2014.

Pension liability (January 1)                                                   $ 500,000

Accumulated benefit obligation (December 31)                 1,250,000

Actual and expected return on plan assets                              15,000

Contributions (funding) in 2014                                                210,000

Fair value of plan assets (December 31)                                960,000

Settlement rate                                                                                      8%

Projected benefit obligation (January 1)                              1,500,000

Service cost                                                                                   165,000

Instructions

(a) Compute pension expense and prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2014.

(b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2014.