Pate Inc. Sponsors a defined benefit pension plan for its employees. On January 1, 2021 the following balances relate to this plan.

Fair Value Plan assets $560,000

Projected benefit obligation 760,000

Unamortized prior service cost 100,000

Unrecognized net gain 86,000

Other data related to the pension plan for 2021

Service cost $80,000

Contributions to the plan (end of the year) 116,000

Benefits paid to retirees (end of the year) 66,000

PBO Loss 10,000

Actual return on plan asset 10%

Expected return on plan asset 12%

Discount (Interest) rate 8%

Average remaining service life of active employees 10 Years

REQUIRED:

1. Calculate the projected benefit obligation at 12,31/2021.

2. Calculate the fair value of the plan assets at 12/31 2021.

3. Calculate the amount of net gain or loss amortization for 2021 and the amount of accumulated unrecognized net gain or loss at 1-1-2022.

4. Calculate the amount of net gain or loss amortization for 2022.

5. Calculate the pension expense for 2021.

6. Prepare all the journal entries related to the above pension plan for 2021

7. Show how the amount related to pension will be reported on 2021 Income Statement and Balance Sheet.