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Okner Inc. sponsors a defined benefit plan. The company provides the following information: On December 31, 2020, plan assets were $270,000 The projected benefit obligation

Okner Inc. sponsors a defined benefit plan. The company provides the following information:

  • On December 31, 2020, plan assets were $270,000
  • The projected benefit obligation on December 31, 2020 was $270,000
  • During 2021, service cost was $30,000, and the settlement rate was 10% (use beginning projected benefit obligation (PBO))
  • Benefits paid in 2021 were $21,000 and contributions were $18,000

Required:

1) Calculate Okner's pension expense for 2021

2) What are the balances of the projected benefit obligation and the plan assets at the end of 2021?

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