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2. Purdue Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years
2. Purdue Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. Purdue Company's defined benefit pension plan covers 230 employees. After negotiating with the employee union, Purdue Company amended Its pension plan on January 1, 2016, and granted $200,000 of additional benefits to its employees. The amortization for you (see table below). Based on the demographics of Purdue Company's employees, required is based off of the years-of-service method, which has already been calculated the company groups its employees into the following retirement buckets: Amortization Required for Years-of-Service Method 2016 $ 71,875.00 2017 $ 62,500.00 2018 $ 45,312.50 2019 $ 20,312.50 $ 200,000.00 2018 PBO January 1 Plan assets January 1 Funded stats January 1 Prior service cost January 1 Service cost Settlement rate Expected return on plan assets Actual return on plan assets Contributions Benefits paid to retirees Increase in PBO due to change in actuarial assumptions ABO 12/31 Average service life of all employees VBO 12/31 2017 $ 550,000 $375,000 S (175,000) $ 140,000 $ 50,000 $ 10% 10% $ 35,000 $ $ 80,000 $ $ 35,000 $ 54,000 10% 10% 58,000 72,000 38,000 $ 95,000 $ 683,200 $ 705,300 4 years $ 325,000 Prepare the journal entries to reflect all pension plan transactions and events at December 31 of each year. Hint: Don't forget to test for the Corridor Assumption; it's sneaky
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