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The accountant for ABC co. has developed the following information for the company's defined -pension plan for 2008:
Beginning PBO $3,750,000
Beginning FMV of assets $2,750,000
Pension Liability $1,000,000
AOCI - unrecognized PSC $625,000
Service cost $500,000
Actual return on plant assets $260,000
Annual contribution to the plan $900,000
Amortization of prior services cost $105,000
Benefits paid to retirees $60,000
Settlement rate 10%
Expected rate of return on plan assets 8%
The Accumulated benefit obligation at December31, 2008 amounted to $4,250,000.
a) Using the above information for ABC co., prepare a pension work sheet for 2008.
Indicate (credit) entries by parentheses. Calculated amounts should be supported.
The solution explains how to prepare a pension worksheet and pass the related journal entries