PensionsPresented Below Is Information Related to Stage Department Stores, Inc

Essay

Pensions.Presented below is information related to Stage Department Stores, Inc. pension plan for 2015. $\begin{array}{lr}\text { Service cost } & \$ 550,000 \\\text { Funding contribution for } 2015 & 530,000 \\\text { Settlement rate used in actuarial computation } & 10 \% \\\text { Expected return on plan assets } & 9 \%\\\text { Amortization of PSC (due to benefit increase) } & 90,000 \\\text { Amortization of unrecognized net gains } & 48,000 \\\text { Projected benefit obligation (at beginning of period) } & 540,000 \\\text { Fair value of plan assts (at beginning of period) } & 360,000\end{array}$
Instructions
(a) Compute the amount of pension expense to be reported for 2015. (Show computations.)(b) Prepare the journal entry to record pension expense and the employer's contribution for 2015.