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Sarasota Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets Projected
Sarasota Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets Projected benefit obligation $1,682,000 $ 1,905,000 223,000 236,000 Pension liability Prior service cost As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. $128,000 $ Service cost for 2020 Settlement rate, 6% , 6 Actual return on plan assets in 2020 106,000 Amortization of prior service cost Expected return on plan assets Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 23,000 160,000 216,000 Contributions in 2020 141,000 Benefits paid retirees in 2020 176,000 (a) Your answer is partially correct. Using the data above, compute pension expense for Sarasota for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) Annual Pension Expense Items Cash Balance, Jan. 1, 2020 $ $ Service cost 128000 Dr. V Interest cost 114300 Dr. Return on assets 106000 Cr. V Amortization of PSC 23000 Dr. UUUUUUUUU Liability decrease Contributions 141000 Benefits Journal entry for 2020 $ 159300 Dr. $ 141000 Accumulated OCI, Dec 31, 2019 Balance, December 31, 2020 e Textbook and Media List of Accounts
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