PENSION PLANS

Blue Inc. adopted a pension plan for its employees on January 1, 2016. Blue gave credit for past services which resulted in unrecognized prior service cost and Projected Benefit Obligation of $400,000. The actuary has provided the following pension related data for 2016 and 2017.

	For the year ended December 31
	2016	2017
Accumulated benefit obligation	$420,000	$470,000
Projected benefit obligation	433,000	513,000
Fair value of plan assets	200,000	272,700
Contribution (made at year end)	200,000	60,000
Benefit payments	-0-	5,300
PBO Gain or (loss)	60,000	8,000

The actual and expected return on plan assets was 9% over the two years but the settlement rate was 12% for 2012 and 10% for 2015. The service cost was $45,000 and $50,000 for 2016 and 2017, respectively. The average remaining service life per employee is 20 years.

REQUIRED:

a. Calculate the amount of unrecognized gain or loss that would be amortized as a component of pension expense for 2016 and 2017.

b. Calculate the amount of net periodic pension expense that the company would recognize for 2016 and 2017.

c. Prepare all required journal entries related Blue Inc.s pension plan for 2016 and 2017