2009 2010

-Projected Benefit Obligation 65,000

-Plan Assets (fair value), Jan 1 41,000

-Pension asset/liability Jan 1(credit) 24,000

-Prior service cost, Jan 1 16,000

-Service cost 4,000 5,900

-Settlement rate 10% 10%

-Expected rate of return 10% 10%

-Actual return on plan assets3,600 6,100

-Amortization of prior service cost7,0005,500

-Annual contributions 7,200 8,100

-Benefits paid to retirees 3,1505,400

-Increase in pension benefit obligations

due to actuarial assumptions 8,700 0

-Accumulated benefit obligations

at December 31 72,180 78,900

-Average service life of all employees20 Years

-Vested benefit obligation-Dec 31 46,400

Use the information provided to:

-Prepare a pension worksheet for both years 2009 and 2010 and the necessary computations and amortization of the loss (2010), using the corridor approach.

-Prepare in the same worksheet the journal entries to reflect all pension plan transactions and events at December 31 of each year.

-For 2010, indicate the pension amounts to be reported in the financial statements.

-In a one paragraph, explain alternative measures for valuing the pension obligation. What would you advise for Panache?