Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2014 and 2015.

(a) Prepare a pension worksheet presenting both years 2014 and 2015 and accompanying computations and amortization of the loss (2015) using the corridor approach.

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

(c) For 2015, indicate the pension amounts reported in the financial statements.

2014 2015 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 $600,000 410,000 190,000 Cr. 160,000 40,000 Service cost $ 59,000 Settlement rate 10% 10% Expected rate of return Actual return on plan assets Amortization of prior service cost 10% 10% 36,000 70,000 97,000 31,500 61,000 50,000 81,000 54,000 Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 87,000 721,800 -0- 789,000 20 years 464,000