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On January 1, 2017, Sweet Company has the following defined benefit pension plan balances. Projected benefit obligation $4,460,000 Fair value of plan assets 4,150,000 The
On January 1, 2017, Sweet Company has the following defined benefit pension plan balances.
Projected benefit obligation | $4,460,000 | |
Fair value of plan assets | 4,150,000 |
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $503,000 are created. Other data related to the pension plan are as follows.
2017 | 2018 | |||||
Service cost | $150,000 | $182,000 | ||||
Prior service cost amortization | 0 | 92,000 | ||||
Contributions (funding) to the plan | 243,000 | 279,000 | ||||
Benefits paid | 199,000 | 278,000 | ||||
Actual return on plan assets | 249,000 | 257,000 | ||||
Expected rate of return on assets | 6 | % | 8 | % |
A.)
Prepare a pension worksheet for the pension plan for 2017 and 2018. (Enter all amounts as positive.)
B.)
For 2018, prepare the journal entry to record pension-related amounts.
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