On December 31, 2017, Taamee Inc. (TI) has the following defined benefit pension plan balances:

Accrued benefit obligation $6,700,000

Pension Fund Assets $6,500,000

The discount rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $300,000 are created.

Other data, related to the pension plan are:

2018 2019

Current service costs $170,000 $190,000

Contributions to the plan $250,000 $160,000

Benefits paid to retirees $290,000 $270,000

Actual return on plan assets $350,000 $24,000

Expected return on plan assets 6% 8%

Contributions and Benefits are paid at the end of the year.

On December 31, 2018 an actuarial valuation measured the Accrued Benefit Obligation as $7,690,000.

REQUIRED: Do the following (show your work):

i) Compute Accrued Benefit Obligation on December 31, 2018

ii) Compute Pension Fund Assets balance on December 31, 2018

iii) Prepare all journal entries for the year ended December 31, 2018

iv) Compute Pension expense for the year ended December 31, 2019