TBSFCO0262 Defined Benefit Pension Spreadsheet

Data for Penne Inc.'s defined benefit plan for Year 5 follows:

At January 1:

• Projected benefit obligation (PBO), $120,000
• Plan assets at fair value (Assets), $90,000
• Prior service cost (PSC) balance in accumulated other comprehensive income (AOCI), $25,000

For Year 5:

• Service cost, $40,000
• Discount rate, 5%
• Expected rate of return on assets, 6%
• Amortization of PSC, $2,500
• Actual return on assets, $6,000
• PBO loss at year-end, $15,000
• Funding contribution at year-end, $40,000
• Benefits paid, $45,000

Complete the Year 5 pension spreadsheet below using the above information. Use parenthesis for negative amounts within categories, and for losses. Enter and extend your amounts to all appropriate cells. Enter 0 in any cell that does not require another entry.