On January 1, 2025, Harrington Company has the following defined benefit pension plan balances. The interest (settlement)

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On January 1, 2025, Harrington Company has the following defined benefit pension plan balances.image


The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, 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.image


Instructions


a. Prepare a pension worksheet for the pension plan for 2025 and 2026.


b. For 2026, prepare the journal entry to record pension-related amounts.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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