The following data relate to the operation of Kramer Co.’s pension plan in 2016. The pension worksheet for 2015 is provided in P20-10.

For 2016, Kramer will use a discount rate of 8%.
Instructions

(a) Prepare a pension worksheet for 2016.

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31.

(c) Indicate the pension amounts reported in the financial statements.

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Service cost $59,000 Actual return on plan assets 32,000 Annual contributions 51,000 Benefits paid retirees 27,000