Pension Data for Sam Adams Inc Required:
1) Determine Pension Expense for the Year

Essay

Pension data for Sam Adams Inc. include the following for the current calendar year:
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost, $400,000 $$\begin{array} { | l | r | } \hline \text { January 1: } & \\\hline \text { PBO } & 3,000,000 \\\hline \text { ABO } & 2,000,000 \\\hline \text { Plan assets } & 3,200,000 \\\hline \text { Amortization of prior service cost } & 30,000 \\\hline \text { Amortization of net gain } & 7,000 \\\hline \text { December 31: } & \\\hline \text { Cash contributions to pension } & \\ \text { fund } & \$ \mathbf { 2 7 5 , 0 0 0 }\\\hline \text { Benefit payments to retirees } & \mathbf { 3 1 0 , 0 0 0 } \\\hline\end{array}$$ Required:
1) Determine pension expense for the year.
2) Prepare the journal entries to record pension expense and funding for the year.