1.

2.

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2018 and $250,000 for 2019. Year-end funding is $170,000 for 2018 and $180,000 for 2019. No assumptions or estimates were revised during 2018 We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2019. Required: Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).) December 31, 2018 December 31, 2019 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability The funded status of Hilton Paneling Inc.'s defined benefit pension plan and the balances in prior service cost and the net gain- pensions, are given below. ($ in 000s) 2018 2018 Beginning Ending Balances Balances $ 4,100 4,241 141 Projected benefit obligation 3,800 3,900 100 Plan assets Funded status Prior service cost-AOCI Net gain-AOCI 400 360 416 360 Retirees were paid $255,000 and the employer contribution to the pension fund was $260,000 at the end of 2018. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 5%. There were no changes in actuarial estimates and assumptions regarding the PBO Required: 1. Determine the actual return on plan assets of 2018. 2. Determine the loss or gain on plan assets of 2018. 3. Determine the service cost of 2018. 4. Determine the pension expense of 2018. 5. Average remaining service life of active employees (used to determine amortization of the net gain) thousand 1 Actual return 2. Loss on plan assets 3. Service cost thousand thousand thousand Pension expense 4. 5. Average service period years