From Limited has a non-contributory, defined benefit pension plan. Pension plan data to be used for accounting purposes for the 20X9 year are as follows (in \(\$\) thousands):

Required:

1. Calculate pension expense for 20X9. The company follows the practice of amortizing actuarial gains and losses to pension expense when the 1 January amount is outside the \(10 \%\) corridor.
2. Calculate the amortization of relevant amounts for \(20 \mathrm{X} 9\), and the unamortized amounts for carryforward.
3. Give the 31 December \(20 X 9\) entries to record pension expense and funding for From.
4. Recalculate your response to requirement 1 assuming that this is a private company that has elected to use the simplified approach to pension accounting. Assume that there are no carryforwards of past service cost or actuarial gains in this requirement.

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a. Pension plan assets Balance, 1 January, at market value $560,000 Actual return; (expected return, 4%) 2,000 Contribution to the pension fund by From 103,200 Benefits paid to retirees (16,400) Balance, 31 December $648,800 b. Projected benefit obligation Balance, 1 January $720,000 Current service cost 97,100 Interest cost 39,700 Loss due to change in actuarial assumptions, as of 31 December, 20X9 10,000 Increase caused by termination benefits; part of restructuring program 8,000 Pension benefits paid (16,400) Balance, 31 December $858,400 Average remaining service period, 14 years Vesting period, 2 years c. Company records 1 January 20X9 unamortized amounts: Unamortized past service cost (1 year amortized, 1 year remaining) Unamortized actuarial gain/loss $18,000 $(95,400) (gain)