On January 1, 2020, Metlock Company has the following defined benefit pension plan balances. Projected benefit obligation $4,464,000
Fair value of plan assets 4,190,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $504,000 are created. Other data related to the pension plan are as follows.

2020 2021
Service cost $148,000 $181,000
Prior service cost amortization 0 89,000
Contributions (funding) to the plan 242,000 279,000
Benefits paid 198,000 274,000
Actual return on plan assets 251,400 264,000
Expected rate of return on assets 6% 8%

Required:
Prepare a pension worksheet for the pension plan for 2020 and 2021.

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u. s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.