AMA Corporation Has a Defined Benefit Pension Plan For the Year Ended December 31,2010,the Current Service Cost as Following

question 65

Essay

AMA Corporation has a defined benefit pension plan.At January 1,2010,the following balances exist:
$\begin{array}{ll}\text { Accrued benefit obligation } & \$ 2,580,000 \\\\\text { Planassets (at market value) } & 1,680,000 \\\\\text { Unamortized past service cost from. plan initiation } & 208,000 \\\\\text { Unrecognized net loss from actuarial gains and losses } & 300,000 \\\\\text { Interest rate on obligations } & 3 \%\end{array}$ For the year ended December 31,2010,the current service cost as determined by an appropriate actuarial cost method was $280,000.A change in actuarial assumptions created a gain of$16,000 in 2010.The expected return on plan assets was $67,200; however,the actual return is $63,700.The expected period of full eligibility at January 1,2010 (i.e.,the vesting period)is 8 years,while the expected average remaining service life is 28 years.AMA paid $227,700 to the pension trustee in December 2010.The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2010.

---

Definitions:

Fiscal Year-End

The completion of a one-year, or 12-month, accounting period, used by governments and businesses for financial reporting and budgeting, which may or may not align with the calendar year.

Quarter Income Statement

A financial report that summarizes the revenues, expenses, and profits or losses of a company over a three-month period.

Impairment Test

An examination to determine if an asset's carrying value exceeds its recoverable amount, indicating if the asset is impaired.

Future Cash Flows

Estimates of the amount of money expected to be received or paid out over future periods.