Wurtz Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 2000. Prior to 2019, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2019, is as follows. 1. The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years for 2019 and for 2020. 2. The projected benefit obligation amounted to $5,000,000 and the fair value of pension plan assets was $3,000,000. The market-related asset value was also $3,000,000. Unrecognized prior service costs $2,000,000. On December 31, 2019, the projected benefit obligation and the accumulated benefit obligation were $4,850,000 and $4,025,000, respectively. The fair value of the pension plan assets amounted to $4,100,000 at the end of the year. A 10% settlement rate and a 10% expected asset return rate were used in the actuarial present value computations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee service in 2019 amounted to $200,000. The employer's contribution to the plan assets amounted to $775,000 in 2019. This problem assumes no payment of pension benefits. Required: (a) Prepare a schedule, based on the average remaining life per employee, showing the prior service cost that would amortized as component of pension expense for 2019, 2020, and 2021. (b) Prepare a pension worksheet for 2019. (c) Determine what would be the amount of the amortization of the net gains or losses in 2019 and 2020. (d) Prepare the journal entry (ies) for 2019. You can show the worksheet approach or the textbook approach. (e) Prepare the 2019 footnote disclosure for the components of pension expense and reconciliation of the funded status. Wurtz Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 2000. Prior to 2019, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2019, is as follows. 1. The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years for 2019 and for 2020. 2. The projected benefit obligation amounted to $5,000,000 and the fair value of pension plan assets was $3,000,000. The market-related asset value was also $3,000,000. Unrecognized prior service costs $2,000,000. On December 31, 2019, the projected benefit obligation and the accumulated benefit obligation were $4,850,000 and $4,025,000, respectively. The fair value of the pension plan assets amounted to $4,100,000 at the end of the year. A 10% settlement rate and a 10% expected asset return rate were used in the actuarial present value computations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee service in 2019 amounted to $200,000. The employer's contribution to the plan assets amounted to $775,000 in 2019. This problem assumes no payment of pension benefits. Required: (a) Prepare a schedule, based on the average remaining life per employee, showing the prior service cost that would amortized as component of pension expense for 2019, 2020, and 2021. (b) Prepare a pension worksheet for 2019. (c) Determine what would be the amount of the amortization of the net gains or losses in 2019 and 2020. (d) Prepare the journal entry (ies) for 2019. You can show the worksheet approach or the textbook approach. (e) Prepare the 2019 footnote disclosure for the components of pension expense and reconciliation of the funded status
