Cruise Company has a noncontributory defined benefit pension plan. The annual accounting period ends on De- cember 31. The following plan information relates to the year 2020. Projected Benefit Obligation Plan Assets Balance, Jan. 1, 2020.... $16,000 Balance, Jan. 1, 2020..... $12,600 Service cost 1,920 Actual return on plan assets. 1,000 Interest cost ($16,000 x 8% discount rate) 1,280 Loss (gain) change in actuarial assumptions Funding to plan by Cruise... Pension benefits paid to retirees 3,000 (1,600) determined Dec. 31, 2020. Pension benefit paid to retirees Balance, Dec. 31, 2020... 660 Balance, Dec. 31, 2020 $15,000 (1,600) $18,260 Other Information Accumulated OCI-Prior Service Cost, Jan. 1, 2020.... Accumulated OCI-Pension Gain/Loss, Jan. 1, 2020... Expected return on plan assets Average remaining service period $1,980 Dr. 440 Cr. 1,000 11 years Required a. Create a worksheet to summarize the pension data at the end of 2020. Assume that Cruise uses the corridor approach in amortizing any pension gain/loss. b. The company president asked the following question: We paid $3,000 cash to the pension fund, but the pro- jected benefit obligation increased over $2,000. Why? Prepare a written response with data and explanation.