Hobbs AG has the following defined benefit pension plan balances on January 1, 2022.

Defined benefit obligation ................ €4,600,000
Fair value of plan assets ...................... 4,600,000

The discount (interest) rate applicable to the plan is 10%. On January 1, 2023, the company amends its pension agreement so that past service costs of €600,000 are created. Other data related to the pension plan are as follows.

Instructions

a. Prepare a pension worksheet for the pension plan in 2022.

b. Prepare any journal entries related to the pension plan that would be needed at December 31, 2022.

c. Prepare a pension worksheet for 2023 and any journal entries related to the pension plan as of December 31, 2023.

d. Indicate the pension-related amounts reported in the 2023 financial statements.

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2022 2023 Service cost €150,000 €170,000 Contributions (funding) to the plan 200,000 184,658 Benefits paid 220,000 280,000 Actual return on plan assets 252,000 350,000