Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2012 and 2013.
|
|
2012
|
|
2013
|
| Projected benefit obligation, January 1 |
|
$603,800 |
|
|
|
|
| Plan assets (fair value and market-related value), January 1 |
|
413,800 |
|
|
|
|
| Pension asset/liability, January 1 |
|
190,000 |
Cr. |
|
|
|
| Prior service cost, January 1 |
|
161,800 |
|
|
|
|
| Service cost |
|
47,800 |
|
|
$62,300 |
|
| Settlement rate |
|
10 |
% |
|
10 |
% |
| Expected rate of return |
|
10 |
% |
|
10 |
% |
| Actual return on plan assets |
|
38,300 |
|
|
64,800 |
|
| Amortization of prior service cost |
|
72,900 |
|
|
55,800 |
|
| Annual contributions |
|
96,700 |
|
|
90,600 |
|
| Benefits paid retirees |
|
32,200 |
|
|
67,980 |
|
| Increase in projected benefit obligation due to changes in actuarial assumptions |
|
94,800 |
|
|
0 |
|
| Accumulated benefit obligation at December 31 |
|
726,100 |
|
|
797,800 |
|
| Average service life of all employees |
|
|
|
|
20 years |
|
| Vested benefit obligation at December 31 |
|
|
|
|
470,500
|
Prepare a pension worksheet presenting both years 2012 and 2013.
Accompanying computations and amortization of the loss (2013) using the corridor approach.