Kiev Company reported the following information relating to its pension plan for the years 2001 through 2004:
|
Year End |
Year End |
Interest |
Return |
|
|
Obligation |
Plan Assets |
Cost |
on Assets |
|
|
2001 |
522,500 |
$469,000 |
— |
— |
|
2002 |
$581,250 |
505,050 |
$52,250 |
$62,750 |
|
2003 |
643,000 |
549,700 |
$58,125 |
7165000% |
|
2004 |
681,500 |
615,600 |
64,300 |
$68,500 |
1. Compute the amount of pension expense to be reported on the income statement for each of the years 2002 through 2004.
2. Determine the net pension amount to be reported on the balance sheet at the end of each year 2001 through 2004. Clearly indicate whether the amount is an asset or a liability.
3. Each year, the amount of the pension obligation is increased by the interest cost and the service cost. The pension obligation is reduced by the amount of pension benefits paid. Compute the amount of pension benefits paid in each of the years 2002 through 2004.
4. Each year, the amount in the pension fund is increased by contributions to the fund and by the return earned on the fund assets. The pension fund amount is reduced by the amount of pension benefits paid. Compute the amount of contributions to the pension fund in each of the years 2002 through 2004.