Determination of Projected Benefit Obligation

Several years ago, Lewad Company established a defined benefit pension plan for its employees. The following information is available for 2016 in regard to its pension plan: (1) discount rate, 10%; (2) service cost, $142,000; (3) plan assets (1/1), $659,000 (4) expected return on plan assets, $65,900

There is no amortization of prior service cost, and there is no gain or loss. On December 31, 2016, Lewad contributed $143,000 to the pension plan, resulting in a credit to Accrued/Prepaid Pension Cost of $8,200.

Required:

1. Compute the amount of Lewad's projected benefit obligation on January 1, 2016.