Exercise 20-12: Cheyenne Company received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2017.

The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,800. The companys actual funding (contributions) of the plan in 2017 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,208,000 on January 1, 2017. Assume no benefits paid in 2017.

**Question: answers in red are incorrect**

Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L) Net gain January 1, 2017 December 31, 2017 $1,497,000 $1,525,000 806,000 1,139,600 1,693,800 1,573,000 (199,700)