On January 1, 2016, Parkway adopted a defined benefit pension plan, with retroactive benefits. Prior service cost of $2,180,000, amortized straight-lined over 16 years.

Service Cost 340,000 348,000 Projected benefit obligation (1/1) 2,180,000 2,738,000 Plan assets (1/1) 0 670,000 Discount rate 10% 10% Expected/actual long-term rate of return 0% 9% Contributions 670,000 700,000 Projected benefit obligation (end of 2017) 3,359,800 Fair value of plan assets 1,430,300

1. Compute the amount of Parkways pension expense for 2016 and 2017. 2. Prepare all the journal entries related to Parkways pension plan for 2016 and 2017. 3. What is the total accrued/prepaid pension cost at the end of 2017? Is it an asset or a liability?