(30 points) The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2017 and 2018:

Account

2017

2018

Annual Service cost

$1,000,000

$1,200000

Actual return on plan assets

500,000

600,000

Amortization of prior service cost

250,000

230,000

Annual contribution to the plan

1,050,000

1,230000

Benefits paid to retirees

1,220,000

1,500,000

Settlement rate

5%

5%

Expected rate of return on plan assets

10%

9%

The projected benefit obligation at December 31, 2018, amounted to $8,750,000.

Instructions

(a)Using the above information for Marlin Corporation, complete the pension worksheet for 2017 and 2018. Calculated amounts should be supported.

(b)Prepare the journal entry (entries) to reflect the accounting for the company's pension plan for the year ending December 31, 2017 and 2018.

(c)Determine whether there will be any net gains/losses amortization for 2019 using the corridor approach.