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Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2016 and $340,000 for 2017. Year-end funding is $260,000 for 2016 and $270,000 for 2017. No assumptions or estimates were revised during 2016.

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Calculate each of the following amounts as of both December 31, 2016, and December 31, 2017: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)

Dec 31st 2016 Dec 31st 2017

a. Projected benefiit obligation

b. plan assets

c. pension expense. d. Net pension asset or net pension liability

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