M Service Co. reported the following for its defined-benefit pension plan for 2020: Service cost $600,000 Actual return on plan
- ) M Service Co. reported the following for its defined-benefit pension plan for 2020:
Service cost $600,000
Actual return on plan assets 460,000
Benefits paid to retirees 418,000
Cash contributions made by M to the pension plan 100,000
Settlement rate 4%
Expected
Average remaining service life of existing employees 10 years
Projected benefit obligation as of 12-31-19 4,800,000
Fair value of plan assets as of 12-31-19 5,000,000
Other comprehensive income – Gains/Loss as of 12-31-19 495,000 cr
Changes in actuarial assumptions resulted in a required 12-31-20 PBO of $4,700,000
- Using the above information for M, prepare a pension work sheet for 2020
- Using the work sheet, prepare the
journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2020.
Will M need to record corridor amortization for 2021, yes or no?
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