PROBLEM # 1 McCaw Company provides the following information about its defined-benefit pension plan for the year 2011. Service cost $210,000 Contribution to the plan 263,000 Prior service cost amortization 35,000 Actual and expected return on plan assets 123,000 Benefits paid 220,000 Plan assets at January 1, 2011 1,440,000 Projected benefit obligation at January 1, 2011 1,800,000 Accumulated OCI (PSC) at January 1, 2011 325,000 Interest/discount (settlement) rate 9% Instruction: Compute the pension expense for the year 2011.

CHAPTER 20 ASSIGNMENT PROBLEM # 1 McCaw Company provides the following information about its defined-benefit pension plan for the year 2011. Service cost $210,000 Contribution to the plan 263,000 Prior service cost amortization 35,000 Actual and expected return on plan assets 123,000 Benefits paid 220,000 Plan assets at January 1, 2011 1,440,000 Projected benefit obligation at January 1, 2011 1,800,000 Accumulated OCI (PSC) at January 1, 2011 325,000 Interest/discount (settlement) rate 9% Instruction: Compute the pension expense for the year 2011. PROBLEM # 2 Ace Inc. has five employees participating in its defined-benefit pension plan. Expected years of future service for these employees at the beginning of 2010 are as follows. Future Years Employee of Service Jane 6 John 1 Jimmy 3 Jenny 6 Jerry 4 On January 1, 2010, the company amended its pension plan increasing its projected benef it obligation by $210,000. Instruction: Compute the amount of prior service cost amortization for the years 2010 through 2015 using the years-of-service method setting up appropriate schedules. PROBLEM # 3 Hunt Syrups Company provides the following pension plan information. Fair value of pension plan assets, January 1, 2010 Fair value of pension plan assets, December 31, 2010 $1,250,000 1,460,000 Contributions to the plan in 2010 160,000 Benefits paid retirees in 2010 206,000 Instruction: From the data above, compute the actual return on the plan assets for 2010. PROBLEM # 4 Banc Six Corp. provides the following information related to its postretirement benefits for the year 20 11. Accumulated postretirement benefit obligation at January 1, 2011 Actual and expected return on plan assets Unrecognized prior service cost amortization Discount rate Service cost $1,195,000 2,500 105,000 8% 121,000 Instruction: Compute postretirement benefit expense for 2011