Problem #2: Pension Accounting Valdivia Company provides the following information about its defined benefit pension plan for 2012. Service cost $ 78,000 Contribution to the plan 98,000 Prior service cost amortization 16,000 Actual and expected return on plan assets 84,000 Benefits paid 60,000 Plan assets at January 1, 2012 750,000 Projected benefit obligation at January 1, 2012 900,000 Accumulated OCI (PSC) at December 31, 2011 180,000 Interest/discount (settlement) rate 10% al Prepare a pension worksheet and answer the following questions: Pension Worksheet Meme Record Pension Cash PSC Pension Asset Liability (150.000 Projected Benefit Obligation 900.000 Auto 750.000 Balance 01/01/2012 Service Cos! Amort, OCPSC Contributions Benefits Paid Liability Cain Journal Entry AOCI 1311 Dec 31, 2012 b) Complete the journal entry for 2012: Journal Entry: DR CR Pension Expense Pension Asset Liability Other Comprehensive Income PSC Cash Problem #3: Cost Recovery Method of Deferring Gross Profit (Similar to Chapter 18: Slides 67-69) In 2016, Denali Manufacturing sells inventory with a cost of $40,000 to Huffmeister Company for $70,000. Huffmeister will make payments of $30,000 in 2016, $28,000 in 2017, and $12,000 in 2018. The cost-recovery method applies to this transaction. A] Complete the following schedule for Denali (for 2016 - 2018) 2016 2017 2018 Cash Collected Revenue Cost of Goods Sold Deferred Gross Profit Less: Recognized Gross Profit Deferred Gross Profit Balance B] Record the Journal entries on Claymore's books to record the gross profit for 2017 & 2018: Problem #4: Calculating the Gross Profit on a LT Construction Contract Western Construction Company entered into a contact to build a condominium complex for $42,000,000. Construction began in 2018 and is expected to be completed in 2020. Western uses the percentage-of- completion method. Data for 2018 and 2019 are as follows 2018 2019 Cost Incurred to Date $5,400,000 $15,600,000 Estimated Cost to Complete|$21,600,000 $14,400,000 Instructions (a) Calculate the amount of gross profit that should be recognized for 2018 (Show your calculations) (b) Calculate the amount of gross profit that should be recognized for 2019 (show your calculations)