Essay
On December 31, 2014, Clemson Company determined that the 2014 service cost on its defined benefit pension plan was $245,000. At the beginning of 2014, Clemson had pension plan assets totaling $990,000 and a projected benefit obligation of $750,000. Its discount rate and expected long-term rate of return on plan assets for 2014 was 12%.
Required:
1) Compute the amount of Clemson's pension expense for 2014.
2) Record the journal entries for Clemson's 2014 pension expense if it funds the pension plan in the amount of (a) $225,000 and (b) $210,000.
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