The interest settlement rate applicable to the plan is 10

Question

(2-Year Worksheet) On January 1, 2010, Cunningham Company has the following defined benefit pension plan balances. 

Projected benefit obligation $4,500,000
Fair value of plan assets 4,200,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2011, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

(a) Prepare a pension worksheet for the pension plan for 2010 and 2011.

(b) For 2011, prepare the journal entry to record pension-relatedamounts.