Accounting, Analysis, and Principles PENCOMP’s statement of financial position at December 31, 2014, is as follows.

Accounting Prepare an income statement for 2015 and a statement of financial position as of December 31, 2015. Also, prepare the pension expense journal entry for the year ended December 31, 2015. Round to the nearest tenth (e.g., round 2.87 to 2.9).
Analysis Compute return on equity for PENCOMP for 2015 (assume equity is equal to year-end equity). Do you think an argument can be made for including some or even all of the asset/liability gains and losses in the numerator of return on equity? Illustrate that calculation.
Principles Explain a rationale for why the IASB has (so far) decided to exclude from the current-period income statement the effects of gains and losses due to changes in actuarial assumptions.

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PENCOMP, INC. STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2014 Equity Assets Plant and equipment Accumulated depreciation 2,000 Share capital (240) Retained earnings 2,000 896 1,760 Total equity 2,896 Inventory 1,800 Liabilities Cash 438 Notes payable 1,000 Total current assets 2,238 Pension liability 102 Total assets 3,998 Total liabilities 1,102 Total equity and liabilities 3,998 Additional information concerning PENCOMP's defined benefit pension plan is as follows. Defined benefit obligation at 12/31/15 Plan assets (fair value) at 12/31/15 Service cost for 2015 Discount (interest) rate Actual return on plan assets in 2015 Contributions to pension fund in 2015 Benefits paid during 2015 Accumulated OCI (net loss due to changes in actuarial assumptions and deferred net losses on plan assets) at 12/31/15; included in retained earnings balance Other information about PENCOMP is as follows. 820.5 718.5 42.0 10% 60.6 70.0 40.0 92.0 Salary expense, all paid with cash during 2015 Sales, all for cash Purchases, all for cash Inventory at 12/31/2015 700.0 3,000.0 2,000.0 1,800.0 Property originally cost 2,000 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are 200 in 2015.