Problem I: Smart Health Company offers a defined benefit pension plan to all its employees. At December 31, 2016, the fair value of plan assets, which equal the market-related asset value, was $670.000 and the Projected Benefit Obligation was also $670,000. On January 1, 2017, as part of the union agreement, Smart Health Company granted $20,000 in retroactive benefits to all employees for their prior years' service when the average remaining service life of employee base was 5 years. The actuary provided the following information related to the plan for 2017 through 2019. Description 2017 2018 2019 Service cost for the year $37,750 $40,300 $41,600 Settlement rate 7% 7.5% 8% Expected return on plan assets 6% 6.5% 7% Actual return of plan assets 41,000 37,500 30,240 Contributions for the year 34,000 40,000 45,000 Benefits payments for the year 24,900 28.700 31,200 Decrease in the ending projected benefit obligation due to 92,000 changes in actuarial assumptions Required: 1. Compute the pension expense for each year showing all the components of pension expense and all calculations. 2. Determine the beginning and ending balances of the plan assets, projected benefit obligation and the funded status for the plan for each year. 3. Prepare the journal entry to record the pension expense for each year. 4. Determine the amounts to be recognized in the Income Statement, Balance Sheet and Other Comprehensive Income in each year