Please answer all parts of 3a-3d (:

3a. Haley Inc. amended its defined benefit pension plan as of January 1, 2021. The amendment provided additional pension credit for work already done in the amount of $800,000. Haley estimated that the average remaining service lives of employees covered by the prior service cost amendment was 10 years.

For the year ended December 31, 2022, which of the following statements are correct? Choose ONE option from A-D and ANOTHER ONE from E-H. There will be TWO CORRECT ANSWERS.

1. The pension amendment will cause pension expense to increase by $80,000 in 2021.
2. Comprehensive income will decrease $800,000 for 2021.
3. A and B.
4. Neither A nor B.
5. Pension expense will increase $80,000.
6. Comprehensive income is not affected by the amortization of prior service.
7. E and F.
8. Neither E nor F.

3b. The information below pertains to a companys defined benefit pension plan:

• Fair value of pension assets on January 1, 2021 $440,000
• Fair value of pension assets on December 31, 2021 487,000
• Pensions paid during 2021 60,000
• Employer contribution to the trust in 2021 63,000
• Expected return on pension assets 10%
• Market related value of pension assets at January 1, 2021 475,000
• Market related value of pension assets at December 31, 2021 517,000

What is the unexpected gain (loss) on pension assets for 2021?

1. $ 3,500.
2. $(3,500).
3. $ 7,700.
4. $(7,700).

3c. The following amounts have been abstracted from a firms pension work paper for the year ended December 31, 2021:

• Pension expense $ 75,000
• Employer contribution 45,000
• Other comprehensive income: prior service cost 8,000
• Other comprehensive income: unexpected gains (losses) 63,000
• Pension asset (liability) at January 1, 2021 (90,000)
• Accumulated other comprehensive income: prior service cost (at 1/1/21) 80,000
• Accumulated other comprehensive income: unexpected (actuarial) - Gains (losses) at 1/1/21 0

In the journal entry to record pension expense for 2021, the pension asset/liability account should be

1. credited for $22,000.
2. credited for $30,000.
3. debited for $25,000.
4. debited for $41,000.

3d. The following amounts have been abstracted from a firms pension work paper for the year ended December 31, 2021:

• Plan assets 1/1/21 $ 715,000
• Projected benefit obligation 1/1/21 810,000
• Service cost 84,000
• Interest cost 48,600
• Expected return 82,500
• Actual return 63,600
• Amortization of prior service cost 7,500
• Employer contribution 65,000
• Pensions paid 112,500
• Amortization of unexpected loss 900
• Increase in projected benefit obligation at 12/31/21 resulting from actuarial changes 45,000

At December 31, 2021....

What is the fair value of pension assets?

A. Pension Assets: $731,100.

B. Pension Assets: $690,000.

C. Pension Assets: $750,000.

D. Pension Assets: $749,100.

What is the projected benefit obligation?

A. Projected benefit obligation: $785,100.

B. Projected benefit obligation: $875,100.

C. Projected benefit obligation: $762,600.

D. Projected benefit obligation: $830,100.

What is the pension expense?

1. Pension Expense: $57,600.
2. Pension Expense: $58,500.
3. Pension Expense: $50,100.
4. Pension Expense: $51,000.

What was the total dollar effect on other comprehensive income (loss)-unexpected gains (losses)?

A. $(64,800).

B. $(63,900).

C. $(45,900).

D. $(63,000).