(See attached file for full problem description)
Simson, Inc. obtained the following information from the insurance company that administers the company's employee defined benefit pension plan:
For the Year Ended December 31,
Plan assets (at fair value) $2,000,000 $2,800,000
Accumulated benefit obligation 2,100,000 3,000,000
Pension expense 800,000 870,000
Funding contribution 880,000 880,000
Prior service cost not yet recognized in earnings 2,000,000 1,980,000
(23) What descriptions and amounts are reported on the income statement and balance sheet related to pensions in 2005?
(24) Assume that there was no unrecognized prior service cost in 2004. How would this affect the income statement and balance sheet in 2004?
The descriptions and amounts of income are calculated in a balance sheet. Guidance and amounts shown in Excel.