Question

ABC Corp. received the following information from its pension plan trustee concerning the operation of the...

ABC Corp. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2018:

January 1, 2018 December 31, 2018

Projected benefit obligation (PBO) $2,200,000

Market-related asset value 1,700,000

Accumulated Other Comprehensive Income (PSC) 890,000

Unrecognized net (gains) and losses   -0- 400,000

Service Cost 125,000

Amortization of prior service cost 240,000

Contribution 610,000

Benefits 200,000

Actual Return on plan asset 100,000

Settlement Rate & Expected rate of return 8%

Required:

a. Prepare the pension worksheet.

b. Prepare the journal entry

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