Buffalo Co. has the following defined benefit pension plan balances on January 1, 2020.
Projected benefit obligation $4,562,000
Fair value of plan assets 4,562,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $601,000 are created. Other data related to the pension plan are:
2020 2021
Service Cost $149,000 $169,000
Prior service cost amortization 0 90,000
Contributions (funding) to the plan 199,000 183,000
Benefits paid 220,000 283,000
Actual return on plan assets 253,000 350,000
Expected rate of return on assets 6% 8%
Required:
a. Prepare a pension worksheet for the pension plan in 2020. (Enter all amounts as positive.)