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 Balance, Jan. 1, 2020. Service cost ...... Interest cost ($16,000 X 8% discount rate).. Loss (gain) change in actuarial assumptions determined Dec. 31, 2020... Pension benefit paid to retirees Balance, Dec. 31, 2020 .. $16,000 1,920 1,280 Plan Assets Balance, Jan. 1, 2020..... Actual return on plan assets. Funding to plan by Cruise.... Pension benefits paid to retirees Balance, Dec. 31, 2020 $12,600 1,000 3,000 (1,600 $15,000 660 (1,600 $18,260 Other Information Accumulated OCIPrior Service Cost, Jan. 1, 2020.... Accumulated OCIPension 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