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1. Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1

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1. Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 242,000 Service cost 43,000 Interest cost (5% discount rate) 12,100 Gain from changes in actuarial assumptions in 2016 (5,200) Benefits paid to retirees (22,000) Balance, Dec. 31 $ 269,900 Plan assets: Balance, Jan. 1 Actual return (expected retum was $22,700) Contributions Benefits paid 252,000 20,000 37,000 (22,000) Balance, Dec. 31 287,000 January 1, 2016, balances: Prior service cost-AOCI (amortization $4,170/yr.) 4,170 Net gain-AOCI (amortization, if any, over 15 years) 41,700 There were no other relevant data. Required: 1) Calculate the 2016 pension expense. 2) Prepare the 2016 journal entries to record pension expense. 3) Prepare the 2016 journal entries to record funding. 4) Prepare any journal entries to record any 2016 gains or losses. 5) Fill in the following spreadsheet. Prior Service Plan cost PBO Assets -AOCI Beginning balance, 01/01/2016 Service cost Interest cost Expected return on assets Gain/loss on assets Amortization of Prior service cost Net gain/loss Net (gain) -AOCI Pension Pension Asset Expense Cash (Liability)

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