Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan.

Plan assets $480,000

Projected benefit obligation: 625,000

Accumulated OCI (PSC): 100,000 Dr.

Accumulated OCI (Gain/Loss): 85,000 Cr.

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary:

Service cost for 2017: $90,000

Settlement rate: 9%

Actual return on plan assets in 2017: 57,000

Expected return on plan assets: 10%

Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions: 76,000

Contributions in 2017: 99,000

Benefits paid retirees in 2017: 85,000

Avg. remaining service life (all employees): 12 years

- Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.

-Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2017.

-Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet Pensions.

-What is the amount of deferred pension gain or loss that the company will carry forward to 2018?

-Compute the same items as in (#1), assuming that the expected rate of return is 14% and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 2017.

General Journal Entries Annual Pension Expense Memo Record Projected Benefit Obligation OCI-Prior Service Cost Pension Asset/Liabilit Items Cash Gain/Loss Plan assets Balance, Jan. 1, 2015 Service cost Interest cost Actual Return Expected Return Amortization of PSC Contributions Benefits Liability increase Journal entry for 201 Accumulated OCI, Dec. 31, 2014 Balance, Dec. 31, 2015