Accountancy 332/532

Take Home Final-Summer 2019

The following information pertains to Rodney Companys defined benefit pension plan for the year ended December 31, 2019:

Service cost for 2019 $ 210,000

Market-related value of pension assets at January 1, 2019 2,650,000

Fair value of pension assets at December 31, 2019 2,500,000

Accumulated other comprehensive income: prior service cost, 12/31/18 150,000

Accumulated other comprehensive income: unexpected loss at

December 31, 2018 310,000

Pensions paid during 2019 285,000

Employer contribution made to the pension trust in December, 2019 200,000

Decrease in the projected benefit obligation due to changes in actuarial

assumptions as of December 31, 2019 150,000

Expected return on pension assets 6%

Discount rate 5%

Average remaining service period of current employees as of January 1, 2019

(to be used for all amortization situations) 10 years

Required:

1. Complete the pension workpaper on the following page