Blossom Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026:
2025 2026
Plan assets (fair value), December 31 $427,680 $498,960
Projected benefit obligation, January 1 432,000 540,000
Pension asset/liability, January 1 64,800 Cr. ?
Prior service cost, January 1 324,000 280,800
Service cost 32,400 45,360
Actual and expected return on plan assets 28,080 34,560
Amortization of prior service cost 43,200 49,680
Contributions (funding) 32,400 36,720
Accumulated benefit obligation, December 31 345,600 410,400
Interest/settlement rate 6% 6%
(a)
Compute pension expense for 2025 and 2026.