Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10% 10% Compute pension expense for 2020 and 2021.Pension expense for 2020 $Pension expense for 2021 $

Pension Expenses: It is an expense that gets a charge from the salary of an employee which will…

Answered: Wildhorse Company sponsors a defined…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6E

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Question

Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.

	2020		2021
Plan assets (fair value), December 31	$817,830			$993,330
Projected benefit obligation, January 1	819,000			936,000
Pension asset/liability, January 1	163,800	Cr.		?
Prior service cost, January 1	292,500			280,800
Service cost	70,200			105,300
Actual and expected return on plan assets	28,080			35,100
Amortization of prior service cost	11,700			14,040
Contributions (funding)	134,550			140,400
Accumulated benefit obligation, December 31	585,000			643,500
Interest/settlement rate	10	%		10	%