Problem 20-03 (Part Level Submission)

Sweet Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the companys actuary provided the following information.

Accumulated other comprehensive loss (PSC)		$149,300
Pension plan assets (fair value and market-related asset value)		197,200
Accumulated benefit obligation		255,900
Projected benefit obligation		387,500

The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $51,000; the projected benefit obligation was $487,000; fair value of pension assets was $279,200; the accumulated benefit obligation amounted to $360,700. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,400. The companys current years contribution to the pension plan amounted to $70,600. No benefits were paid during the year.

(a)

Determine the components of pension expense that the company would recognize in 2020. (With only one year involved, you need not prepare a worksheet.) (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Components of Pension Expense
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense		$
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense
Actual Return on Plan AssetsAmortization of Gain or LossAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostUnexpected LossPension Expense
Actual Return on Plan Assets Amortization of Gain or Loss Amortization of Prior Service Cost Benefits Paid Contributions to Plan Expected Return on Plan Assets Interest on Projected Benefit Obligation Service Cost Unexpected Loss Pension Expense		$

b. prepare the JE to record the pension expense and the company's funding of the pension plan in 2019

c. compute the amount of the 2020 increase/decrease in gains or losses and the amount to be amortized in 2020 and 2021

d. indicate the pension amounts reported in the financial statement as of december 31st 2020