P20-8 (Comprehensive 2-Year Worksheet) Glesen Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2008 and 2009.

2008 2009

Projected benefit obligation, January 1 $650,000

Plan assets (fair value and market related value), Jan. 1 410,000

Prepaid/accrued pension cost (credit), January 1 80,000

Additional pension liability, January 1 12,300

Intangible asset-deferred pension cost, January 1 12,300

Unrecognized prior service cost, January 1 160,000

Service cost 40,000 $ 59,000

Settlement rate 10% 10%

Expected rate of return 10% 10%

Actual return on plan assets 36,000 61,000

Amortization of prior service cost 70,000 55,000

Annual contributions 72,000 81,000

Benefits paid retirees 31,500 54,000

Increase in projected benefit obligation due to

changes in actuarial assumptions 87,000 -0-

Accumulated benefit obligation at December 31 721,800 789,000

Average service life of all employees 20 years

Vested benefit obligation at December 31 464,000

Instructions

(a) Prepare a pension worksheet presenting both years 2008 and 2009 and accompanying computations including the computation of the minimum liability and amortization of the unrecognized loss (2009) using the corridor approach.