Question
Sweet Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years
Sweet Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 Projected benefit obligation, January 1 $610,000 Plan assets (fair value and market-related value), January 1 450,000 Pension asset/liability, January 1 160,000 Cr. Prior service cost, January 1 390,000 Service cost 70,000 $97,000 Settlement rate Expected rate of return 8 % 8 % 8 % 89 Actual return on plan assets 60,000 55,000 Amortization of prior service cost 80,000 129,000 Annual contributions 90,000 107,000 Benefits paid retirees 58,000 62,000 Increase in projected benefit obligation due to changes in actuarial assumptions 147,000 0 Accumulated benefit obligation at December 31 462,000 565,000
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