On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,534,000 4,270,000 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 $502,000 are created. Other data related to the pension plan are as follows. 2020 2021
On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,534,000 4,270,000 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 $502,000 are created. Other data related to the pension plan are as follows. 2020 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Aa.65.
Transcribed Image Text:On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances.
Projected benefit obligation
Fair value of plan assets
Service cost
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 $502,000 are created. Other data related to the pension plan are as follows.
Prior service cost amortization
Benefits paid
$4,534,000
Contributions (funding) to the plan
Actual return on plan assets
4,270,000
Expected rate of return on assets
(a)
2020
$149,000
0
244,000
200,000
256,200
6 %
2021
$180,000
92,000
284,000
275,000
261,000
8%
Prepare a pension worksheet for the pension plan for 2020 and 2021. (Enter all amounts as positive.)
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