3. Accounting for Pensions (22 points) Bottle Rocket Company sponsors a non-contributory dened benet pension plan for its employees. The following data relate to the operation of the plan for the years 2016 and 2017: 2016 2017 Projected Benet Obligation, U1 $680,000 Fair Value of Plan Assets, U1 625,000 Balance in Net Pension LiabilitylAsset, U1 55,000 (Unrecognized) AOCI - Prior Service Cost (SEE), U 1 100,000 (Unrecognized) AOCI - Net Actuarial Gain (S/E), U1 90,000 Service Cost 75,000 S 80,000 Discount (Settlement) Rate 5% 5% Expected Rate of Return on Plan Assets 7% 6% Actual Return on Plan Assets 40,000 60,000 Annual Contributions to the Pension Plan at 12:31 90,000 80,000 Increase in PRC due to change in actuarial assumptions about future salaries (at year-end, 12/31) 25,000 0 Payments from the Pension Plan to retirees at 12f31 60,000 65,000 Average remaining service life of employees 10 years 9 years Required (hint it is probably helpful to use worksheets): a. Determine Pension Expense for 2016 and 2017. (11 pts) b. Prepare the journal entry necessary to reflect pension transactions in 2016 and 2017. (6 M) c. What are the balances in Accumulated 0C1 PSC and Accumulated 0C1 Actuarial GainfLoss at 123 U 16 and 12f3 U17, respectively? (3 pts) d. What is the funded status of the plan on 1213 U16 and 12131117, respectively? (2 pts)