On January 1, 2014, Harrington Company has the following

P20-1 (2-Year Worksheet)

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.

2014                2015

Service cost                                                     $150,000         $180,000

Prior service cost amortization                                     -0-                    90,000

Contributions (funding) to the plan                  240,000           285,000

Benefits paid                                                   200,000           280,000

Actual return on plan assets                             252,000           260,000

Expected rate of return on assets                     6%                   8% (a)

Prepare a pension worksheet for the pension plan for 2014 and 2015