Maple, Inc., a calendar-year firm, began operations in 2015. In 2020 Maple reported net income of $325,000. The company made the following investments (classified as available-for-sale (AFS)) on July 1, 2020:

Cost

Oak Corp., 10% semi-annual bonds $250,000

Ash Company, 6.5% semi-annual bonds 600,000

Both bonds have interest dates of June 30 and December 31 and were purchased at par value.

At December 31, 2020 the fair values for Maples AFS securities: Oak, $258,000; Ash, $622,000.

Maple also has a defined benefit pension plan for its employees. On January 1, 2020, the balance in the projected benefit obligation (PBO) was $3,150,000 and the fair value of plan assets (FVPA) was $2,400,000. Selected relevant data for 2020 is provided below.

2020 Data

Service Cost $290,000

Interest Cost 252,000

Expected return on plan assets 156,000

Actual return on plan assets 192,000

Maples Cash contribution to plan 265,000

Retiree benefits paid by plan trustee 90,000

Increase in PBO due to actuarial adjustments on 12/31/20 210,000

Required:

1: Prepare the journal entries necessary to record transactions related to Maples ownership of AFS securities (you do not have to record the purchases on July 1, 2020).

2: Prepare the journal entries necessary to record any transactions related to the Maples pension plan for 2020.

3. Calculate the ending balances for the PBO, FVPA and accrued/prepaid pension cost accounts.

4. Maple did not report any AOCI amount in its 2019 balance sheet. After the journal entries (or on the back of the following page), prepare Maples statement of comprehensive income (in good form) assuming that Maple elects to report comprehensive income in a separate statement and reports each item net of tax (Maples tax rate is 25%).