35. ABC has the following information related to its defined benefit pension plan:

Projected benefit obligation at 12/31/x1 170,000

Settlement rate 9%

Projected benefit obligation at 12/31/x2 195,000

Unamortized prior service cost at 12/31/x1 32,000

Unamortized actuarial gains/losses at 12/31/x1 9,000 net gains

Unamortized experience gains/losses at 12/31/x1 12,000 net gains

Fair value of plan assets at 12/31/x1 187,000

Actual return on plan assets during year x2 15,000

Expected rate of return on plan assets 8%

Prior service cost is being amortized over a remaining service life of 8 years. The average service lives for current employees is 10 years.

The minimum amount of gain/loss required under current GAAP is amortized each year.

Assume the company funds 90% of pension expense. Make the journal entry to record pension expense for the year.

36. On January 1, year 1, $1,000,000 was collected in advance for rental of a building for a five-year period. The entire $1,000,000 was reported as taxable income for the year. The enacted tax rate for this year is 44%. The enacted tax rate for all future years is 46%. Compute the balance in the deferred tax asset at December 31, year 1. SHOW COMPUTATIONS

37. On January 1, year 1 $1,000,000 was collected in advance for rental of a building for a five-year period. The entire $1,000,000 was reported as taxable income for the year. The enacted tax rate for this year is 44%. The enacted tax rate for all future years is 46%. Calculate the amount of taxable income for year 1 assume the company has pretax accounting income of $5,700,000. SHOW COMPUTATIONS

39. On January 1, year 1 $1,000,000 was collected in advance for rental of a building for a five-year period. The entire $1,000,000 was reported as taxable income for the year. The enacted tax rate for this year is 44%. The enacted tax rate for all future years was 46%. As the result of a change in the tax law, the enacted tax rate for years all years after year 3 is 45%. Compute the balance in the deferred tax asset at December 31, year 2. SHOW COMPUTATIONS

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