Problem 20-1

On January 1, 2017, Tamarisk Company has the following defined benefit pension plan balances.

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 $501,000 are created. Other data related to the pension plan are as follows.

Prepare a pension worksheet for the pension plan for 2017 and 2018. (Enter all amounts as positive.)

Projected benefit obligation Fair value of plan assets $4,437,000 4,132,000