Question
Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020
Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 Projected benefit obligation, January 1 $600,000 Plan assets (fair value and market-related value), January 1 410,000 Pension asset/liability, January 1 190,000 Cr. Prior service cost, January 1 160,000 Service cost 40,000 $59,000 Settlement rate 10 % 10 % Expected rate of return 10 % 10 % Actual return on plan assets 36,000 61,000 Amortization of prior service cost 70,000 50,000 Annual contributions 97,000 81,000 Benefits paid retirees 31,500 54,000 Increase in projected benefit obligation due to changes in actuarial assumptions 87,000 0 Accumulated benefit obligation at December 31 721,800 789,000 Average service life of all employees 20 years Vested benefit obligation at December 31 464,000
For 2021, indicate the pension amounts reported in the financial statements. (Round answers to 0 decimal places, e.g. 5,125.)
Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 $600,000 410,000 190,000 Cr. 160,000 40,000 10 % $59,000 10 % 10 % 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 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost 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 61.000 10 % 36,000 70,000 97,000 31,500 87,000 721,800 50,000 81,000 54,000 0 789,000 20 years 464,000 (c) 1 1 1 I I 1 Your answer is partially correct. 1 1 For 2021, indicate the pension amounts reported in the financial statements. (Round answers to O decimal places, e.g. 5,125.) Lemke Company Income Statement (Partial) For the Year Ended December 31, 2021 Operating Expenses Pension Expense 134,223 Total Expenses Pension Expense $ 134,223
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