Preparing a Pension Work Sheet
The following data relate to the defined benefit pension plan of Haan Company:
|
Balances at January 1, 2008: |
|
|
PBO |
$3,500 |
|
Unrecognized prior service cost |
$ 150 |
|
Fair value of pension assets |
$3,000 |
|
ABO |
$2,800 |
|
Expected return on plan assets |
7% |
|
Settlement discount rate |
10% |
|
Activity for 2008: |
|
|
Service cost |
$ 400 |
|
Benefit payments to retirees |
170 |
|
Contributions to pension fund |
230 |
|
Actual return on plan assets |
130 |
|
Prior service cost amortization |
40 |
Instructions: Prepare a pension work sheet for Haan Company for 2008.