Kennedy Company had a defined benefit obligation of \($6\),300,000 and plan assets of \($4\),900,000 at January 1, 2015. Kennedy has the following data related to the plan during 2015.

Defined benefit obligation at December 31, 2015, is \($6\),650,000. There are no accumulated gains or losses at December 31, 2015.
Instructions

(a) Prepare a pension worksheet for Kennedy Company for 2015.

(b) Prepare the journal entry to record 2015 pension expense.

(c) Indicate how pension gains and losses (if any) will be reported by Kennedy in the statement of comprehensive income and the statement of financial position.

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Discount (interest) rate Service cost 7% $120,000 Actual return on plan assets 295,000 Contributions 400,000 Benefits paid 300,000