1. Compute 2015 pension expense

2. Compute the 12/31/15 project s benefit obligation.

3. Compute the 12/31/16 plan assets

4. Prepare journal entry to record pension expense 12/31/15

5. Amount to be reported as pension Assets/Liability 12/31/15

6. Compute the total balance in Accum. Other compensation income 12/31/15 an incident how it affects 12/31/15 balance sheet.

	12/31/14	12/31/15
Service Cost	200,000
Actual return on plan assets	105.000
Annual contribution to the plan	400,000
Benefits paid to retirees	24,000
Pension Asset/Liability (credit 12/31/15	400,000	?
Project benefit obligation	1500,000	?
Plan asset	1,100,000	?
Unrecognized prior service cost	250,000	208,000
Unrecognized net gain or loss	0	?
Amortization of unrecognized PSC	42,000
Accumulated benefit obligation	1,340,000	1,700,000
Settlement rate	10%
Expected rate of return on plan assets	8%