Question :

On 1^st January, 2013, Laura's Living Company has the subsequent defined benefit pension plan balances.

Projected benefit obligation $5,700,000

Fair value of plan assets 7,200,000

The interest (settlement) rate applicable to the plan is 10 percent. On 1^st January, 2014, the company amends its pension agreement so that service costs of $350,000 are created. Other data related to the pension plan are as given.

                                                           2013                            2014

Service costs                                    $150,000                 $165,000

Prior service costs amortization      $0                             $63,000

Contributions (funding) to the plan $168,000                $194,000

Benefits paid                                    $190,000               $220,000

Actual return on plan assets            $576,000               $498,000

Expected rate of return on assets        8%                        7%

Required:

(a) Purpose a pension worksheet for the pension plan for 2013 and 2014.