Problem 20-8 Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018.

2017 2018
Projected benefit obligation, January 1 $603,800
Plan assets (fair value and market-related value), January 1 412,500
Pension asset/liability, January 1 191,300 Cr.
Prior service cost, January 1 158,900
Service cost 39,800 $58,700
Settlement rate 10 % 10 %
Expected rate of return 10 % 10 %
Actual return on plan assets 35,900 60,400
Amortization of prior service cost 69,600 50,000
Annual contributions 97,500 80,200
Benefits paid retirees 31,200 54,480
Increase in projected benefit obligation due to changes in actuarial assumptions 87,700 0
Accumulated benefit obligation at December 31 722,900 782,700
Average service life of all employees 20 years
Vested benefit obligation at December 31 462,800