The following information pertains to A&E Co.'s defined benefit pension plan for the year 2013.
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Projected benefit obligation at 1/1/2013
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$600,000
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Fair value of pension plan assets 1/1/2013
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420,000
|
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Unrecognized prior service costs at 1/1/2013
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240,000
|
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Service cost
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80,000
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Amortization of prior service costs
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20,000
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Contributions to the plan
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40,000
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Benefits paid
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15,000
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Actual and expected return on plan assets
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6%
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Interest/discount rate used
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6 %
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a. Show calculations to compute the pension expense for 2013.
b. Show calculations to compute the ending balance of the projected benefit obligation at 12/31/2013.
c. Show calculations to compute the ending balance of the plan assets at 12/31/2013.