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(TCO C) On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances. Projected benefit obligation $5,700,000 Fair value of plan
(TCO C) On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances. Projected benefit obligation $5,700,000 Fair value of plan assets 7,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2014, the company amends its pension agreement so that service costs of $350,000 are created. Other data related to the pension plan are as follows. 2013 2014 Service costs $150,000 $165,000 Prior service costs amortization $0 $63,000 Contributions (funding) to the plan $168,000 $194,000 Benefits paid $190,000 $220,000 Actual return on plan assets $576,000 $498,000 Expected rate of return on assets 8% 7% Required: (a) Prepare a pension worksheet for the pension plan for 2013 and 2014. . (Points : 15)
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