Melanie Vail Corp sponsors a defined-benefit pension plan for its employees.

Melanie Vail Corp sponsors a defined-benefit pension plan for its employees. On January 1, 2010 the following balances relate to this plan. Plan Assets = 480,000; Projected benefit obligation = 625,000; Accumulated OCI (PSC) = 100,000 Dr. As a result of the operation of the plan during 2010, the following additional data are provided by the actuary. Service cost for 2010 = 90,000; settlement rate = 9%; actual return on plan assets in 2010 = 57,000; amortization of prior service cost = 19,000; expected return on plan assets = 52,000; unexpected loss from change in projected benefit obligation, due to change in actuarial predictions = 76,000; contributions in 2010 = 99,000; benefits paid retirees in 2010 = 85,000.
(a) use a computer spreadsheet to prepare a pension worksheet. On the pension worksheet, compute pension expense, pansion asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss. (b) compute the same items as in (a), assuming that the settlement rate is now 7% and the expected rate of return in 10%. (c) prepare the journal entry to record pension expense in 2010. (d) indicate the reporting of the 2010 pension amounts in the income statement and balance sheet.