II. PROBLEMS (50 points) To receive credit, you must show some work for every problem even if the calculations are very simple. An answer without any work will receive "0" points. To receive partial credit, your work must be clearly organized and easy to read. If work is not well organized, neat and labeled, no credit will be awarded. A. HANNA COMPANY (25 pts) Hanna Company has 200 employees who are expected to receive benefits under the company's defined-benefit pension plan. On January 1, 2019, Hanna Company amended its pension plan which caused an increase of $400,000 in its projected benefit obligation. The total number of service-years of these employees is 2,000. The actuary for the company's pension plan calculated the following net gains and losses: For the Year Ended December 31 2019 2020 2021 (Gain) Or Loss $(465,600) 489,960 (138,200) T300B ter 23 Problems flows for the information Prior to 2019, there was no unrecognized net gain or loss. Selected Information about the pension plan of Hanna Company is as follows: Projected benefit obligation, 1/1 Projected benefit obligation, 12/31 Fair Value of Plan Assets, 1/1 Fair Value of Plan Assets, 12/31 Settlement rate Expected rate of return Service cost Contributions Benefits paid to retirees Total service years nt) quival noun 2019 2020 $2,100,000 $2,340,000 2021 $2,940,000 2,340,000 2,940,000 3,180,000 1,680,000 2,060,000 2,310,000 2,060,000 2,310,000 2,745,000 10% 10% 10% 8% 8% 8% et 210,000 234,000 294,000 400,000 420,000 460,000 300,000 310,000 320,000 200 160 100 1. Based on the above information about Hanna Company, fill in the schedule below that reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2019, 2020, and 2021. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees. Corridor Test and Gain/Loss Amortization Schedule PBO (10%) Plan Assets Corridor Accumulated (Gain)/ Loss Amortization 168,000 (465,600) 255,900 2019 2,400 000 1,650,000 2,100,000 2020 2,340,000 2,060,000 206,000 2021 2, 946000 2,510,000 231,000 2,940,000 (465,600) 489,366 (138,200) ALL RIGHTS RES OCI, 12/3 Bal., Dec. 31 2) 4 A 5 A Proble 2. Calculate the pension expense for 2020. ce Cost est Cost cted Return on plant asset ortization of unrecognized ior service st itization of unrecognized losses pension expense 3. Prepare the journal entries to rec pension plan for 2020. The actu