(2-Year Worksheet) On January 1, 2010, Cunningham Company has the following defined benefit pension plan balances.?

Projected benefit obligation ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$4,500,000

Fair value of plan assets? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?4,200,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2011, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

(a) Prepare a pension worksheet for the pension plan for 2010 and 2011.

(b) For 2011, prepare the journal entry to record pension-related amounts.

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Service cost Prior service cost amortization Contributions Benefits paid Actual return on plan assets Expected rate of return on assets (funding) to the plan 2010 $150.000 -0- 240,000 200,000 252,000 6% 2011 $180.000 90.000 285,000 280,000 260,000 8%