Service cost for 2005 was $90,000. There was no contribution made or benefit paid during the year. Sparta's unfunded accrued pension liability was $8000 at January 1, 2005. Sparta uses the straight-line method of amortization over the maximum period permitted.

items to be answered;

Calculate the following amounts for Sparta's pension cost for 2005:

1 interest cost

2 expected return on plan assets

3 Actual return on plan assets

4 Amortization of prior service costs

5 Minimum amortization of unrecognized gain

for the following items determine whether the component increases, decreases, or has no effect on Sparta's unfunded accrued pension liability.

i Service cost

ii. Interest cost

iii. Actual return on plan assets

iv. Amortization of prior service cost

v. Amortization of unrecognized pension gain