Amex Company started a noncontributory defined benefit pension plan on January 1, 2019. The records of Amex Company indicate the following for the year 2020.

Required

a. Compute net pension expense for 2020 assuming that the January 1, 2020, Accumulated OCI-Pension Gain/Loss is amortized in 2020 over a 15 -year average remaining service period.

b. Prepare the 2020 pension expense, deferral of gain, funding, and benefits paid entries for Amex Company.

c. Compute the underfunded (overfunded) pension balance as of December 31, 2020.

d. Create a worksheet to summarize the pension data at the end of 2020.

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Account Balances Jan. 1, 2020 Activity 2020 Projected Benefit Obligation... $30,000 Cr. Service cost $10,000 Plan Assets.. 27,500 Dr. Interest cost (interest rate, 10%) 3,000 Accumulated OCI- Pension Gain/Loss. Gain in PBO due to change in actuarial 1,500 Cr. assumption... 2,000 Pension benefits paid. 500 Actual earnings on plan assets (same as expected return) 2,500 Plan funding payment (contributions). 15,000