Planck, Inc. provides a defined benefit pension plan for its employees. The following data is available for the plan for the years 20X5 and 20X6.

PLANCK, INC. DEFINED BENEFIT PENSION PLAN DATA

FOR YEARS 20X5 AND 20X6

	20x5	20x6
Projected benefit obligation, January 1	$750,000	?
Plan assets (fair value and market related value), January 1	500,000	?
Pension asset (liability), January 1	(250,000)	?
Unrecognized prior service cost, January 1	150,000	?
Service cost	55,000	69,000
Settlement rate	9%	9%
Expected rate of return on plan assets	9%	9%
Actual return on plan assets	45,000	55,000
Amortization of prior service cost	60,000	54,000
Annual contributions	80,000	90,000
Benefits paid to retirees	38,500	60,000
Increase in projected benefit obligation due to changes in actuarial assumptions	85,000	0
Accumulated benefit obligation, December 31	732,000	801,000
Average service life of all employees		20years
Vested benefit obligation, December 31		480,000

REQUIRED: (1) Prepare a pension worksheet for both 20X5 and 20X6 along with the appropriatecomputations. Besuretoincludeanycomputationsnecessaryto amortize unrecognized gains and losses using the corridor approach required under GAAP.

(2)Prepare the general journal entries, in proper form, to record all pension plan transactions on the companys books for both 20X5 and 20X6. Provide a brief explanation for your entry. (3) Prepare a schedule to reconcile the funded status of the pension plan with the pension amounts reported in the financial statements as of December 31, 20X6