Question

.. LUIO payment was made. The $600,000 was expensed in 2018. For tax --wrcrance pay is deductible as it is paid. The enacted tax rates existing at December 31, 2017 are: 2017 35% 2019 40% 2018 40% 2020 40% INSTRUCTIONS: (a) Determine taxable income for 2017 and 2018. (b) Prepare the journal entry to record income taxes for 2017 and 2018. (c) Prepare the income tax expense section of the income statement for the year ended December 31, 20 (d) Show how the deferred income taxes should be reported on the balance sheet at Dec. 31, 2018 SEE Part III: The following defined pension data of EPA Corporation apply to the year 2017. 5,200,000 5,180,000 215,000 9% PBO, January 1, 2017 (before amendment) Plan assets, January 1, 2017 On January 1, 2017, through plan amendment, prior service benefits granted having a PV of Settlement & expected return rate Service cost Contributions (funding) Actual return on plan assets Benefits paid to retirees Average service life of all covered employees in years 255,000 388,000 429,000 420,000 10 INSTRUCTIONS: 1. For 2017, prepare a pension worksheet that shows the journal entry for pension expense ar in the related pension accounts. 2. Prepare the journal entry for pension expense for 2017.

Answer 1

calculation of pension expense for 2017
1. Service cost	$    255,000.00
2. Interest cost	$    468,000.00
3. expected return on plan assets	$   (466,200.00)
4. Amortised loss	$      37,200.00
5. Prior service cost benefits	$    215,000.00
Pension Expense	$    509,000.00
Journal entry
Pension expense a/c -Dr	$    509,000.00
To Pension Liability		$ 294,000.00
To OCI a/c		$ 215,000.00