On January 1, 2014, Harrington 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, 2015, 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 2014 and 2015.
(b) For 2015, prepare the journal entry to record pension-relatedamounts.