Projected benefit obligation Fair value of plan assets $4,500,000 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $150,000 $180,000 90,000 285,000 280,000 260,000 8% Prior service cost amortization -0- Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 240,000 200,000 252,000 6%
Projected benefit obligation Fair value of plan assets $4,500,000 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $150,000 $180,000 90,000 285,000 280,000 260,000 8% Prior service cost amortization -0- Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 240,000 200,000 252,000 6%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(2-Year Worksheet) On January 1, 2017, Harrington Company has the following defined benefit pension plan balances.
Check the below image for information.
Instructions
(a) Prepare a pension worksheet for the pension plan for 2017 and 2018.
(b) For 2018, prepare the
Transcribed Image Text:Projected benefit obligation
Fair value of plan assets
$4,500,000
4,200,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that
prior service costs of $500,000 are created. Other data related to the pension plan are as follows.
2017
2018
Service cost
$150,000
$180,000
90,000
285,000
280,000
260,000
8%
Prior service cost amortization
-0-
Contributions (funding) to the plan
Benefits paid
Actual return on plan assets
Expected rate of return on assets
240,000
200,000
252,000
6%
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