The interest (Settlement) rate applicable to the plan is 10% . On January 1, 2009, the company amends its pension agreement so that prior service cost of $500,000 are created. Other data related to the pension plan are as follows.
Service Cost $150,000 $180,000
Unrecognized prior service costs
Amortization -0- -0-
Contribution (funding) to the plan 140,000 185,000
Benefit Paid 200,000 280,000
Actual Return on plan assets 252,000 260,000
Expected rate of return on assets 6% 8%
(a) Prepare a pension worksheet for the pension plan for 2008 and 2009
(b) As of December 31, 2009, Prepare a schedule reconciling the funded status with the reported liability (accrued pension cost).
The solution examines pension plan worksheets