1. Presented below is information related to Stage Department Stores, Inc. pension plan for the year.

Service cost $520,000

Funding contribution 500,000

Settlement rate used in actuarial computation 10%

Expected return on plan assets 9%

Amortization of PSC (due to benefit increase) 80,000

Amortization of unrecognized net gains 48,000

Projected benefit obligation (at beginning of period) 480,000

Market-related (and fair) value of plan assets (at beginning of period) 360,000

Pension expense for the year is

a. $589,900

b. $567,600

c. $663,600

d. $407,600

2. On January 1, Nen Co. has the following balances:

Projected benefit obligation $4,100,000

Fair value of plan assets 3,750,000

The settlement rate is 10%. The expected rate of return is 6%. Other data related to the pension plan for the year are:

Service cost $220,000

Amortization of prior service costs 54,000

Contributions 290,000

Benefits paid 225,000

Actual return on plan assets 254,000

Amortization of net gain 18,000

The balance of the plant assets at December 31 is

a. $4,069,000.

b. $4,040,000.

c. $4,190,000.

d. $4,235,000.