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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