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Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2012
Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2012 and 2013.
2012 | 2013 | |||||
Projected benefit obligation, January 1 | $603,800 | |||||
Plan assets (fair value and market-related value), January 1 | 413,800 | |||||
Pension asset/liability, January 1 | 190,000 | Cr. | ||||
Prior service cost, January 1 | 161,800 | |||||
Service cost | 47,800 | $62,300 | ||||
Settlement rate | 10 | % | 10 | % | ||
Expected rate of return | 10 | % | 10 | % | ||
Actual return on plan assets | 38,300 | 64,800 | ||||
Amortization of prior service cost | 72,900 | 55,800 | ||||
Annual contributions | 96,700 | 90,600 | ||||
Benefits paid retirees | 32,200 | 67,980 | ||||
Increase in projected benefit obligation due to changes in actuarial assumptions | 94,800 | 0 | ||||
Accumulated benefit obligation at December 31 | 726,100 | 797,800 | ||||
Average service life of all employees | 20 years | |||||
Vested benefit obligation at December 31 | 470,500 |
Prepare a pension worksheet presenting both years 2012 and 2013.
Accompanying computations and amortization of the loss (2013) using the corridor approach
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