Problem 1 (20%) Sheehan Bank Corp. has a defined benefit pension plan that covers all its full-time employees. The chief

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Problem 1 20 Sheehan Bank Corp Has A Defined Benefit Pension Plan That Covers All Its Full Time Employees The Chief 1 (413.42 KiB) Viewed 27 times

Problem 1 (20%) Sheehan Bank Corp. has a defined benefit pension plan that covers all its full-time employees. The chief accountant obtained the following data relating to the pension plan in 2014: Defined benefit obligation, Dec. 31, 2013 Benefits paid to retirees in 2014 Current service cost for 2014 Actual return on plan assets for 2014 Fair value of plan assets, Dec. 31, 2013 Contributions to the pension fund at year-end 2014 Past service cost: from changes made in 2014 to the plan that increased pension benefits for service years prior to 2014. $424,000 28,000 26,800 19,800 312,000 31,000 14,800 19,200 Actuarial revaluation: made at the end of 2014 that increased pension liability because of a revision upward of salary increase rates for employees Long-term interest rate on high-quality, corporate bonds 6% 1. Calculate all the elements of pension expense for 2014 and make journal entries at the end of year.