Problem 20-1 On January 1, 2017, Windsor Company has the following defined benefit pension plan balances Projected benefit obligation Fair value of plan assets $4,441,000 ,230,000 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 $495,000 are created. Other data related to the pension plan are as follows. 2017 2018 $179,000 89,000 290,000 276,000 254,000 -- Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets $150,000 240,000 196,000 253,800 6% 8%