On January 1, 20x5, publicly accountable entity Pug Corp. reported the following balances relating to its defined benefit pension plan:
	Defined benefit obligation	$12,000,000
	Fair value of plan assets	11,400,000
Other data related to the pension plan for 20x5 are:
	Current service cost	2,800,000
	Contribution to the pension plan	1,675,000
	Benefits paid to retirees	1,777,000
	Actual return on plan assets	2,450,000
	Yield on high quality corporate bonds	7%
On June 30, 20x5, Pug sold its controlling interest in one of its subsidiaries, and as such the employees were removed from the pension plan. Consequently, the defined benefit obligation and plan assets decreased by $900,000 and $510,000, respectively.
Required –
a)	Calculate the defined benefit obligation at December 31, 20x5.
b)	Calculate the fair value of plan assets at December 31, 20x5.
c)	Prepare the journal entry for the year.