The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the...
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Accounting
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $494,000 are created. Other data related to the pension plan are as follows.
| 2020 | 2021 | |||||
|---|---|---|---|---|---|---|
| Service cost | $148,000 | $177,000 | ||||
| Prior service cost amortization | 0 | 90,000 | ||||
| Contributions (funding) to the plan | 244,000 | 288,000 | ||||
| Benefits paid | 200,000 | 275,000 | ||||
| Actual return on plan assets | 254,400 | 260,000 | ||||
| Expected rate of return on assets | 6 | % | 8 | % | ||
(a)
Prepare a pension worksheet for the pension plan for 2020 and 2021. (Enter all amounts as positive.)
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