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 Service cost for the year Settlement rate Expected return on plan assets Actual return of plan assets Contributions for the year bevear Benefits payments for the year Decrease in the ending projected benefit obligation due to changes in actuarial assumptions 2017 $37,750 7% 6% 41,000 34,000 24,900 2018 $40,300 7.5% 6.5% 37,500 40.000 28,700 92,000 2019 $41.600 8% 7% 30,240 45,000 31,200 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