Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 2015. On 31 December 2015, the following information is available:

For accounting purposes

* Interest rate used for pension amounts, 5%.

* Past service cost, granted as of 1 January 2015, $280,000. This is also the defined benefit obligation on 1 January.

* Current service cost for 2015, appropriately measured for accounting purposes, $75,000.

For funding purposes

* Funding was $103,500 in 2015 for all pension amounts. The payment was made on 31 December.

Actual earnings on fund assets, zero.

Required:

1. Prepare a pension spreadsheet that summarizes relevant pension data for 2015.

2. Prepare a pension spreadsheet that summarizes relevant pension data for 2016. The following facts relate to 2016:

a. Current service cost for accounting was $112,000.

b. A plan amendment resulted in a past service cost of $48,000 being granted.

c. Total funding of the pension plan was $126,000, on 31 December 2016.

d. Actual return on fund assets was $9,700.

e. An actuarial revaluation was done to reflect new information about expected turnover rates in the employee population. This resulted in a $43,000 increase in the defined benefit obligation, as of 31 December 2016.

Pension Obligation Plan Assets Pension Expense Net Pension Asset/Liability Accumulated OCI

2016

Opening

CSC

Net interest

PSC (new)

Actual return versus expected

Revaluation

Funding