Question

E 17–10 - Abbott and Abbott - Determine pension expense 

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss–AOCI on January 1, 2011.

Required:

1. Determine Abbott and Abbott’s pension expense for 2011. 

2. Prepare the journal entries to record Abbott and Abbott’s pension expense, funding, and payment for 2011.