The following information pertains to A&E Co.?s defined benefit pension plan for the year 2014.

a. Show calculations to compute the pension expense for 2014.

b. Show calculations to compute the ending balance of the projected benefit obligation at 12/31/2014.

c. Show calculations to compute the ending balance of the plan assets at 12/31/2014.

Projected benefit obligation at 1/1/2014 Fair value of pension plan assets 1/1/2014 Unrecognized prior service costs at 1/1/2014 Service cost Amortization of prior service costs Actual return on plan assets Contributions to the plan Benefits paid Expected return on plan assets Interest/discount rate used $900,000 600,000 200,000 70,000 25,000 40,000 30,000 20,000 7% 6%