Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan.

Plan assets	$480,000
Projected benefit obligation	625,000
Accumulated OCI (PSC)	100,000 Dr.
Accumulated OCI (Gain/Loss)	85,000 Cr.

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary:

Service cost for 2017	$90,000
Settlement rate	9%
Actual return on plan assets in 2017	57,000
Expected return on plan assets	10%
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	76,000
Contributions in 2017	99,000
Benefits paid retirees in 2017	85,000
Avg. remaining service life (all employees)	12 years

1. Use the spreadsheet (shown below) to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.

	Pension Expense	Pension Asset	Pension Liability	Projected Benefit	Plan Assets	Prior Service Cost	Net Gains or (Loss)	Deferred Pension gain	Income statement	Balance Sheet
				Obligations		OCI	OCI	or Loss Carried forwrd	Reported Amount	Reported Amount
Balance, Jan. 1, 2017
Service cost
Interest cost
Actual Return
Expected Return
Amortization of PSC
Contributions
Benefits
Liability increase
Journal entry for 2017
Accumulated OCI, Dec. 31, 2016
Balance, Dec. 31, 2017

2. Prepare the journal entry to record pension expense in 2017.

3. Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet below

4. What is the amount of deferred pension gain or loss that the company will carry forward to 2018?

5. Compute the same items as in (#1), assuming that the expected rate of return is 14% and the Accumulated OCI (Gain/Loss) is a Debit balance at January 1, 2017.