***MUST HAVE BACK-UP CALCULATIONS**

PROBLEM # 1

McCaw Company provides the following information about its defined-benefit pension plan for the year 2017.

Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Projected benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Interest/discount (settlement) rate

$210,000 263,000 36,000 123,000 220,000 1,440,000 1,800,000 325,000 8%

Instruction: Compute the pension expense for the year 2017.

PROBLEM # 2

Banc Six Corp. provides the following information related to its postretirement benefits for the year 2017.

Accumulated postretirement benefit obligation at January 1, 2017 Actual and expected return on plan assets Unrecognized prior service cost amortization Discount rate

$1,159,000 2,500 106,000 6% 121,000

Service cost Instruction: Compute postretirement benefit expense for 2017.