1. A Company starts a defined benefit pension plan on January 1, Year One. The prior service cost on that date is $400,000. The company employees on that date are expected to work for an additional 8 years on the average. During Year One, service cost was $240,000, funding was $300,000, interest on the projected benefit obligation was $30,000, expected and actual earnings on plan assets was $18,000. On the company's December 31, Year One, balance sheet, what is reported for accumulated other comprehensive income as a result of this pension? a. $332,000 b. $350,000 c. $362,000 d. $400,000

2. A company has a defined benefit pension plan that has been in operation for a number of years. On January 1, Year One, the company amends the plan and the projected benefit obligation increases by $280,000. On the same day, the actuary changes one of the actuarial assumptions and, as a result, the projected benefit obligation increases by another $420,000. On that day, the company has five employees who are each expected to work for an average of another seven years. At the end of Year One, what balance is shown in the company's accumulated other comprehensive income as reported within the stockholders' equity section of the balance sheet? a. $600,000 b. $640,000 c. $660,000 d. $700,000