Kaa & Shere Khan Company has a non-contributory, defined benefit pension plan. Kaas incremental borrowing rate is 7%. The accounting period ends 31 December 2016. Pension plan data to be used for accounting purposes in 2016 are as follows:

Fair value of plan assets, Dec 31, 2015 $6,258,000

Defined benefit obligation, Dec 31, 2015 $7,299,000

Actual return on plan assets for 2016 $61,100

Actuarial revaluation dated Dec 31, 2016 $(806,900)

(due to mortality assumption changes)

Funding payment at year end 2016 $250,000

Benefits paid to retirees in 2016 $105,000

Current service cost for 2016 $233,400

Required:

1. Calculate the net defined benefit pension liability as of Dec 31, 2015.

2. Calculate the net defined benefit pension liability as of Dec 31, 2016 by calculating the defined benefit obligation and the fair value of plan assets as at Dec 31, 2016.

3. A friend of yours is confused because she cannot find the pension assets or the accrued obligation on Kaa & Shere Khan Companys most recent financial statements. She asks you to explain.