Several years ago the Lewad Company established a defined benefit pension plan for its employees. The following information is available for 2007 in regard to its pension plan:
(1) Discount rate, 10%;
(2) Service cost, $142,000;
(3) Plan assets (1/1), $659,000; and
(4) Expected return on plan assets, $65,900. There is no amortization of unrecognized prior service cost and there is no gain or loss. On December 31, 2007, the company contributed $140,000 to the pension plan, resulting in a credit to Prepaid/Accrued Pension Cost of $8,200.
Required
Compute the amount of Lewad Company’s projected benefit obligation on January 1, 2007.