1. On January 2, 20X2, East Corp. adopted a defined benefit pension plan. The plan's service cost of $150,000 was fully funded at the end of 20X2. Prior service cost was funded by a contribution of $60,000 in 20X2. Amortization of prior service cost was $24,000 for 20X2. At December 31, 20X2, what amount should East report as prepaid pension cost?

a. $60,000

b. $36,000

c. $84,000

d. $90,000

2.The following information pertains to Lee Corp.'s defined benefit pension plan for 20X1:

Service cost	$160,000
Actual and expected gain on plan assets	35,000
Unexpected loss on plan assets related to a 20X1 disposal of a subsidiary	40,000
Amortization of unrecognized prior service cost	5,000
Annual interest on pension obligation	50,000

What amount should Lee report as pension expense in its 20X1 income statement?

a. $250,000

b. $180,000

c. $220,000

d. $210,000