Question
Monty Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation $4,623,000 Fair value of plan assets 4,623,000 The
Monty Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation $4,623,000 Fair value of plan assets 4,623,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $603,000 are created.
Other data related to the pension plan are: 2020 2021 Service cost $149,000 $170,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan 199,000 184,000 Benefits paid 217,000 277,000 Actual return on plan assets 250,000 346,000 Expected rate of return on assets 6 % 8 %
Prepare a pension worksheet for the pension plan in 2020. (Enter all amounts as positive.)
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