Exercise 20-15

Windsor Company provides the following selected information related to its defined benefit pension plan for 2020.

Pension asset/liability (January 1)

$24,000

Cr.

Accumulated benefit obligation (December 31)

398,100

Actual and expected return on plan assets

9,700

Contributions (funding) in 2020

148,900

Fair value of plan assets (December 31)

792,000

Settlement rate

10

%

Projected benefit obligation (January 1)

695,000

Service cost

79,200