Puhlman Inc. provides a defined benefit pension plan to its employees. It smooths recognition of its gains and losses when computing its market-related value to compute expected return. Additional information follows: December 31, Description 2017 2016 PBO? $ 2,500,000 ABO $ 2,335,000 2,150,000 Fair value of plan assets ? 2,100,000 Market-related value of plan assets (smoothed recognition) 2,342,800 2,100,000 Benefit payments made 272,000 231,000 AOCInet actuarial (gain) loss 114,000 -0- AOCIprior service cost ? 400,000 Balance sheet pension asset (liability)? (400,000 ) Service cost 214,000 Contribution 321,000 Actual return 129,000 Discount rate for PBO 9 % 10 % Expected rate of return 10 % 10 % Average remaining service life of employees 15 years During 2017, the PBO increased by $33,000 due to a decrease in the discount rate from the previous year. The 2016 discount rate assumption was used to compute the 2017 service cost and interest cost.

Required:

1.Prepare the companys required pension journal entries for 2017.

2. Compute the 2017 increase/decrease in AOCInet actuarial (gains) or losses and the amount to be amortized in 2017 and 2018.

3. Confirm that the pension asset (liability) on the balance sheet equals the funded status as of December 31, 2017.