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On January 1 , 2 0 1 9 , Smith Company adopted a defined benefit pension plan. At that time, Smith awarded retroactive benefits to
On January Smith Company adopted a defined benefit pension plan. At that time, Smith awarded retroactive benefits to its employees, resulting in a prior service cost that created a projected benefit obligation of $ on that date which it did not fund Smith decided to amortize the prior service cost by the straightline method over the year average remaining service life of its active participating employees. Smiths actuary has also provided the following additional information for and : service cost: $; $; expected and actual return on plan assets: $; and projected benefit obligation: $ The discount rate was in both and Smith contributed $ and $ to the pension fund at the end of and respectively. There are no other components of Smiths pension expense.
Required:
Compute the amount of Smiths pension expense for and
Prepare all the journal entries related to Smiths pension plan for and
Next Level If the prior service cost was vested, explain how Smiths pension expense for would be different under amended
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