Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year:

($ in millions)

Prior service cost at Jan. 1, 2015 (from plan amendment at

the beginning of 2013 (amortization:$500 million per year) $5,000

Projected Pension Benefit Obligation:

Balance, Jan. 1,2015 $240,000

Service cost 41,000

Interest expense (5% discount rate) 12,000

Benefits paid to retirees (20,000)

Balance, Dec. 31,2015 $273,000

Plan assets:

Balance, Jan.1,2015 $180,000

Actual return (expected return was $18,000) 15,000

Cash Contributions to pension fund 33,000

Benefits paid (20,000)

Balance, Dec. 31,2015 $208,000

January 1, 2015 balances:

Pension liability ($ 60,000)

Required:

1. (5 points) Calculate 2015 pension expense. Show calculations.

2. (2 points) Prepare the journal entry for pension expense of 2015.

3. (1 point) Prepare the journal entry to recognize the funded status of the pension plan on 12/31/2015 as required by SFAS 158. Ignore income tax effect (note: this is to record the net loss for the actual return being less than the expected return).

4. (1 point) What is the funded status of the pension plan on 12/31/2015?

5. (1 point) What is the balance of pension liability on 12/31/2015? Show your calculations. Is this the same or different from the funded status of the pension plan on 12/31/2015?