The following information relates to a firm's pension plan.

Prior service cost due to 2017 amendment ..................................  $ 60,000
PBO, January 1, 2017 ......................................................................  1,000,000
FMV, January 1, 2017 ......................................................................  1,200,000
Settlement interest rate .................................................................              7%
Expected return on plan assets.....................................................              9%
Actual return on plan assets .........................................................              8%
Liability loss (gain) ..........................................................................     (40,000)
Contribution to plan trustee (made at end of year) ..................     100,000
Service cost  ....................................................................................     115,000
Payments to retired employees ...................................................       30,000

REQUIRED
a. Compute the December 31, 2017, PBO and FMV of pension assets.
b. Compute 2017 pension expense.
c. Use the financial statements effects template to show the effects on the 2017 financial statements of the recording of:

• The plan amendment
• Pension expense
• The liability gain
• The asset loss
• The cash contribution to the trustee
• Payments to retiring employees.