The Following Information Is Related to the Defined Benefit Pension

Essay

The following information is related to the defined benefit pension plan of Xavier Company for 2012:
$\begin{array}{lr}\text { Service cost } & \$ 60,000 \\\text { Contributions to pension plan } & 142,400 \\\text { Benefits paid to retirees } & 150,000 \\\text { Plan assets (fair value), January 1 } & 740,000 \\\text { Plan assets (fair value), December 31 } & 850,000 \\\text { Unamortized Prior Service Cost, January 1 } & 160,000 \\\text { Unamortized Prior Service Cost, December 31 } & 110,000 \\\text { Actual return on plan assets } & 150,000 \\\text { PBO, January 1 } & 900,000 \\\text { PBO, December } 31 & 960,000 \\\text { ABO, December } 31 & 890,000 \\\text { Discount rate } & 10 \% \\\text { Long-term expected return on plan assets } & 9 \%\end{array}$
Required:
1. Using the above information calculate pension expense for $2012 ?$
2. Will it be necessary for the company to report a minimum pension liability at Dec. 31 , 2012? If so what is the amount.