Question
Vine Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan: 1/1/2020 12/31/2020 Projected benefit obligation 27,000 36,000
Vine Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan:
1/1/2020 12/31/2020
Projected benefit obligation 27,000 36,000
Plan assets (fair value) 16,800 22,400
AOCI - Loss 4,000 ?
Settlement rate and expected rate of return 6%
Service cost for the year 2020 4,100
Contributions (funding in 2020) 11,500
Benefits paid in 2020 3,300
Vine Company amends its pension plan on 1/2/2020 and grants $4,200 of prior service costs to its employees. The Board prefers straight-line amortization of prior service costs over the average remaining service life of the employees. The employees are grouped according to expected years of retirement, as follows:
Group Number of Employees Expected Retirement on December 31
A 10 2022
B 20 2023
C 10 2024
D 25 2025
E 35 2026
use a 2020 pension worksheet with supplementary schedules of computations and record a journal entry at 12/31/2020 related to pension transactions. In your supplementary schedules, you should show all required calculations, including but not limited to: beginning and ending account balances, average remaining service life, corridor amortization, expected return on plan assets, and changes in Pension Asset/Liability
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