Fox Company has a non-contributory, defined benefit pension plan adopted on 1 January \(20 X 5\). On 31 December 20X5, the following information is available:

For accounting purposes

- Interest rate used for discounting and asset return, \(5 \%\).

- Past service cost, granted as of 1 January, \(\$ 200,000\). This is also the defined benefit obligation on 1 January. These benefits vest over 10 years.

- ARSP is 14 years.

- Current service cost for 20X5, appropriately measured for accounting purposes, \(\$ 67,000\).

For funding purposes

- Funding was \(\$ 99,500\) for all pension amounts. The payment was made on 31 December.

- Actual earnings on fund assets, zero.

Required:

1. Compute pension expense for \(20 \mathrm{X} 5\), and indicate the closing pension asset or liability account as of 31 December 20X5. 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. Prepare a pension spreadsheet that summarizes relevant pension data for \(20 \mathrm{X} 5\).

3. Prepare a pension spreadsheet that summarizes relevant pension data for 20X6. The following facts relate to \(20 X 6\) :

- Current service cost for accounting was \(\$ 96,000\). Interest on the defined benefit obligation was \(\$ 13,850\).

- A plan amendment resulted in a past service cost of \(\$ 40,000\) being granted as of 1 January 20X6 (31 December 20X5). This amount vests immediately.

- Total funding of the pension plan was \(\$ 118,000\), on 31 December \(20 X 6\).

- Actual return on fund assets was \(\$ 8,900\).

- An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a \(\$ 35,000\) increase in the defined benefit obligation, as of 31 December \(20 X 6\).