Khan Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a defined benefit pension plan for all of its employees, and the controller provides you with the following data that relate to the plan for fiscal 2017:

1. The actuary has determined that the actuarial present value of future benefits earned by employees for services rendered in the year amounted to $86,000.

2. The plan requires Khan to make a cash contribution of $175,000 to the plan assets for 2017.

3. On January 1, 2017, the company's defined benefit obligation was $1,030,000, and the fair value of pension plan assets was $950,000. The plan assets generated a return of $56,000 during the year, and Khan's discount rate was 8%.

4. Benefits of $75,000 were paid in 2017. 5. In late December 2017, an actuarial revaluation of the defined benefit obligation indicated an actuarial loss of $29,000.

Instructions

(a) Determine the pension expense that should be recognized by the company in 2017.

(b) Prepare the journal entries to record pension expense and the employer's payment to the pension trustee in 2017.

(c) Determine the plan's surplus or deficit position and the balance of the Net Defined Benefit Liability/Asset account at January 1, 2017 and at December 31, 2017.

(d) Prepare a pension work sheet for this plan for the year, including all related entries that would be required.