Reference no: EM132703337
M Service Co. reported the following for its defined-benefit pension plan for 2016:
Service cost $560,000
Actual return on plan assets 157,000
Benefits paid to retirees 198,000
Cash contributions made by M to the pension plan 250,000
Settlement rate 3.50% Expected rate of return on plan assets 5.20%
Average remaining service life of existing employees 15 years
Projected benefit obligation as of 12-31-15 3,190,000
Fair value of plan assets as of 12-31-15 3,265,000
Other comprehensive income - Gains/Loss as of 12-31-15 340,000 cr
Problem a. Using the above information for M, prepare a pension work sheet for 2016.
Problem b . Using the work sheet, prepare the entry to reflect the accounting for the company's pension plan for the year ending 12-31-16.
Problem C . Will M need to record corridor amortization for 2017, yes or no