Hobbs Co. has the following defined benefit pension plan balances on January 1, 2012.

Projected benefit obligation	$4,600,000
Fair value of plan assets	4,600,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2013, the company amends its pension agreement so that prior service costs of $600,000 are created. Other data related to the pension plan are:

	2012	2013
Service cost	$150,000	$170,000
Prior service cost amortization	0???	90,000
Contributions (funding) to the plan	200,000	184,658
Benefits paid	220,000	280,000
Actual return on plan assets	252,000	350,000
Expected rate of return on assets	6%	8%

Instructions

(a)	Prepare a pension worksheet for the pension plan in 2012.

(b)	Prepare any journal entries related to the pension plan that would be needed at December 31, 2012.

(c)	Prepare a pension worksheet for 2013 and any journal entries related to the pension plan as of December 31, 2013.

(d)	Indicate the pension-related amounts reported in the 2013 financial statements.