Prepare a pension worksheet for the pension plan

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Question - On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances.

Projected benefit obligation $5,700,000

Fair value of plan assets 7,200,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2014, the company amends its pension agreement so that service costs of $350,000 are created. Other data related to the pension plan are as follows.

2013 2014

Service costs $150,000 $165,000

Prior service costs amortization $0 $63,000

Contributions (funding) to the plan $168,000 $194,000

Benefits paid $190,000 $220,000

Actual return on plan assets $576,000 $498,000

Expected rate of return on assets 8% 7%

Required: Prepare a pension worksheet for the pension plan for 2013 and 2014.

Reference no: EM131828811

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