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Thekid6556
Thekid6556
02.04.2021 • 
Business

On January 1, 2020, Bonita Company has the following defined benefit pension plan balances. Projected benefit obligation $4,464,000 Fair value of plan assets 4,190,000 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 $504,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $148,000 $181,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan 242,000 279,000 Benefits paid 198,000 274,000 Actual return on plan assets 251,400 264,000 Expected rate of return on assets 6 % 8 % Prepare a pension worksheet for the pension plan for 2017 and 2018. (Enter all amounts as positive.)
Projected benefit obligation Fair value of plan assets $4,437,000 4,132,000

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