Blossom Company received the following selected information
from its pension plan trustee concerning the operation of the
company’s defined benefit pension plan for the year ended December
31, 2020.
|
|
January 1, 2020
|
|
December 31, 2020
|
| Projected benefit obligation |
|
$1,483,000 |
|
$1,511,000 |
|
| Market-related and fair value of plan assets |
|
797,000 |
|
1,130,700 |
|
| Accumulated benefit obligation |
|
1,583,000 |
|
1,700,800 |
|
| Accumulated OCI (G/L)—Net gain |
|
0 |
|
(198,300 |
) |
The service cost component of pension expense for employee services
rendered in the current year amounted to $78,000 and the
amortization of prior service cost was $117,800. The company’s
actual funding (contributions) of the plan in 2020 amounted to
$254,000. The expected return on plan assets and the actual rate
were both 10%; the interest/discount (settlement) rate was 10%.
Accumulated other comprehensive income (PSC) had a balance of
$1,178,000 on January 1, 2020. Assume no benefits paid in 2020.
|
|
|
|
|
|
Determine the amounts of the components of pension expense that
should be recognized by the company in 2020.
|
|
|
Indicate the pension-related amounts that would be reported on
the income statement and the balance sheet for Blossom Company for
the year 2020.