Use the financial statements effects template to show effect

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Reference no: EM131119221

Use the information provided below to

a. Compute the December 31, 2010 PBO and FMV of pension assets.

b. Compute 2010 pension expense.

c. Use the financial statements effects template to show the effects on the 2010 financial statements.

Prior service cost due to 2010 amendment ........... $ 60,000

PBO, January 1, 2010 ............ 1,000,000

FMV, January 1, 2010 ........... 1,200,000

Settlement interest rate ............... 7%

Expected return on plan assets ............ 9%

Actual return on plan assets ............. 8%

Liability loss (gain) ............. (40,000)

Contribution to plan trustee (made at end of year) . 100,000

Service cost ................. 115,000

Payments to retired employees .......... 30,000

Reference no: EM131119221

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