Problem 20-09 (Part Level Submission) Sunland Co. has the following defined benefit pension plan balances on...

Problem 20-09 (Part Level Submission)

Sunland Co. has the following defined benefit pension plan balances on January 1, 2020.

Projected benefit obligation		$4,558,000
Fair value of plan assets		4,558,000

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 $595,000 are created. Other data related to the pension plan are:

	2020		2021
Service cost	$151,000		$172,000
Prior service cost amortization	0		90,000
Contributions (funding) to the plan	201,000		185,000
Benefits paid	219,000		280,000
Actual return on plan assets	251,000		348,000
Expected rate of return on assets	6	%	8	%

a. prepare pension worksheet for the pension plan in 2020

b. prepare any JE related to the pension plan that would be needed at december 31 2020

c. Prepare a pension worksheet for 2021 and any JE related to the pension plan as of December 31, 2021

d. indicate the pension-related amounts reported in the 2021 financial statements

Expert Solution

ekkarill92 answered 3 years ago

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