3. Accounting for Pensions (22 points) Bottle Rocket Company sponsors a non-contributory defined benefit pension plan employees. The following data relate to the operation of the plan for the years 2016 and 2017: for its 16 Projected Benefit Obligation, 1/1 Fair Value of Plan Assets, 1/1 Balance in Net Pension Liability/Asset, 1/1 (Unrecognized) AOCI- Prior Service Cost (S/E), 1/1 (Unrecognized) AOCI- Net Actuarial Gain (S/E), 1/1 Service Cost Discount (Settlement) Rate Expected Rate of Return on Plan Assets Actual Return on Plan Assets $680,000 625,000 55,000 100,000 90,000 75,000 5% 7% 40,000 90,000 $ 80,000 5% 6% 60,000 80,000 Annual Contributions to the Pension Plan at 12/31 Increase in PBO due to change in actuarial assumptions about future salaries (at year-end, 12/31) 25,000 Payments from the Pension Plan to retirees at 12/3160,000 65,000 9 years Average remaining service life of employees 10 years Required (hint- it is probably helpful to use worksheets): Determine Pension Expense for 2016 and 2017. (11 pts) Prepare the journal entry necessary to reflect pension transactions in 2016 and 2017. (6 pts) What are the balances in Accumulated OCI-PSC and Accumulated OCI- Actuarial Gain/Loss at 12/31/16 and 12/31/17, respectively? (3 pts) What is the funded status of the plan on 12/31/16 and 12/31/17, respectively? (2 pts) a. b. c. d