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Nunez Corp. sponsors a defined benefit pension plan for its employees. Information about the plan is provided below. Required: (a) Determine the pension-related journal entries that Nunez should record for 2021 and 2022. (b) Determine the effects of the pension plan on Nunezs reported net income for 2021 and 2022 (ignoring taxes). (c) Determine the balances that Nunez should report on its December 31, 2021 and 2022 balance sheets for Net Pension Asset or Liability and Accumulated OCIPrior Service Costs. Also indicate the sections of the balance sheet in which each of these items should appear (i.e., Assets, Liabilities, or Equity). (d) Prepare pension worksheets to summarize the pension data for 2021 and 2022. This should help you determine the answers to parts (a), (b), and (c) above. You may use the templates provided later in this document. Balances at December 31, 2020 ($ in thousands) Projected Benefit Obligation $1,600 Plan Assets 1,250 Accumulated OCIPrior Service Costs 0 Activity during the year ($ in thousands) 2021 2022 Service cost $190 $205 Prior service cost (plan amended, Jan. 1, 2022) 0 310 Actual return on plan assets 85 120 Contributions from Nunez to pension plan 200 270 Benefits paid from pension plan to retirees 160 165 Other information 2021 2022 Expected return on plan assets 8% 8% Discount rate (settlement rate) 5% 5% Average expected future service life of active employees 5 years 5 years Other information (continued) Nunez uses the expected return on assets. Nunez uses the years-of-service method for any necessary amortization of prior service costs. The January 1, 2022 plan amendment noted above affected all 100 employees that were active at that time. Those 100 employees are expected to provide service in the future as projected below. (I.e., Nunez expects those employees to provide 500 total future service-years and expects the company to consume those 500 service-years in the pattern below.) Employees remaining (of those active at 1/1/22) 2022 100 2023 85 2024 75 2025 65 2026 55 2027 45 2028 35 2029 25 2030 15 Total 500

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