Intermediate Accounting: P20-8 Lemke Company sponsors a defined-benefit pension plan

Intermediate Accounting 
P20-8 Comprehensive 2-Year Worksheet 
Lemke Company sponsors a defined-benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011. 
2010 2011 
Projected benefit obligation, January 1 600,000 
Plan assets (fair value and market-related value), January 1 410,000 
Pension asset/liability, January 1 190,000 Cr 
Prior service cost, January 1 160,000 
Service cost 40,000 59,000 
Settlement rate 10% 10% 
Expected rate of return 10% 10% 
Actual return on plan assets 36,000 61,000 
Amortization of prior service cost 70,000 50,000 
Annual contributions 97,000 81,000 
Benefits paid retirees 31,500 54,000 
Increase in projected benefit obligation due to 
changes in actuarial assumptions 87,000 - 
Accumulated benefit obligation at December 31 721,800 789,000 
Average service life of all employees (years) 20 
Vested benefit obligation at December 31 464,000 

Instructions 
(a) Prepare a pension worksheet presenting both years 2010 and 2011 and accompanying computations and amortization of the loss (2011) using the corridor approach. 
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. 
(c) For 2011, indicate the pension amounts reported in the financial statements.