Problem 20-8 (Part Level Submission)

Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2014 and 2015.

		2014			2015
Projected benefit obligation, January 1		$602,500
Plan assets (fair value and market-related value), January 1		413,400
Pension asset/liability, January 1		189,100	Cr.
Prior service cost, January 1		167,900
Service cost		48,600			$65,100
Settlement rate		10	%		10	%
Expected rate of return		10	%		10	%
Actual return on plan assets		35,200			67,800
Amortization of prior service cost		70,800			54,800
Annual contributions		98,300			88,200
Benefits paid retirees		35,300			63,950
Increase in projected benefit obligation due to changes in actuarial assumptions		88,600			0
Accumulated benefit obligation at December 31		725,600			798,200
Average service life of all employees					20 years
Vested benefit obligation at December 31					471,600

Prepare a pension worksheet presenting both years 2014 and 2015. Accompanying computations and amortization of the loss (2015) using the corridor approach.