1. Assume the following data is presented for Oehler Company for the year 2014

Annual service cost for 2014 is $29,000

Settlement rate is 7%;

expected earnings rate is 7%

Actual return on plan assets for 2014 is 28,000

Amortization of PSC in 2014 21,000 Contributions (funding) in 2014 is 32,000

Benefits paid to retirees in 2014 is 20,000

The end-of-year 2014 projected benefit obligation 640,000

Required:

(a) Determine the pension expense for the year 2014

(b) .Determine the beginning of the year projected benefit obligation

this is the solution, how the professor got the numbers

Problem #2

Annual service cost for 2014		$29,000
Settlement rate is 7%; expected earnings rate is 7%
Actual return on plan assets for 2014		28,000
Amortization of PSC in 2014		21,000
Contributions (funding) in 2014		32,000
Benefits paid to retirees in 2014		20,000
The end-of-year 2014 projected benefit obligation		640,000
Pension Expense
Service cost		29,000
Interest on PBO		41,280
Actual earnings on plan assets		(28,000)
Amort of PSC		21,000
Amort of gain/loss		0
Total pension expense		63,280
PBO
Beginning of year		589,720
Service cost		29,000
Interest on PBO (BOY * .07)		41,280
Benefits paid		(20,000)
End of year		640,000