ACC 306 Week 3 Exercise 17-10

E 1710 - Abbott and Abbott - Determine pension expense ? LO6 LO7

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2011.

Required:

1.Determine Abbott and Abbotts pension expense for 2011.

2.Prepare the journal entries to record Abbott and Abbotts pension expense, funding, and payment for 2011.