The following is a news item reported by Reuters: WASHINGTON, Jan 29 (Reuters)Knowlton Medical Group, a maker of reconstructive implants for knees and hips, on Tuesday filed to sell 4 million shares of common stock. In a filing with the U.S. Securities and Exchange Commission, it said it plans to use the proceeds from the offering for general corporate purposes, working capital, research and development, and acquisitions. After the sale there will be about 30.0 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Knowlton shares closed at $18.05 on Nasdaq. The common stock of Knowlton Medical Group has a par of $0.01 per share. Required: Prepare the journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

--

Assume that the pension benefit formula of ABC Corporation calls for paying a pension benefit of $250 per year for each year of service with the company plus 50% of the projected last years salary at retirement. Payments begin one year after the employee attains the age of 65 and are paid annually thereafter. The average life expectancy of employees is 76.

The pension plan is adopted on January 1, 2017. One of the companys employees, I.M. Workaholic, is granted credit for 10 years of prior service. He is 50 years old at the date the plan is adopted. His current annual salary is $20,000, but his salary level when he retires in 15 years is expected to be $30,000.

Assume a 10% rate of interest for both the discount rate and the expected rate of return on plan assets. Use the PV of 1, PVAD of 1, and PVOA of 1 tables where appropriate. (Use the appropriate factor(s) from the tables provided.)

Required:

1. Determine the PBO and ABO related to Workaholics pension benefits as of January 1, 2017.
2. What would the projected benefit obligation be on December 31, 2017?
3. How much pension expense should ABC Corporation recognize in 2017 for Workaholic? Show the components of pension expense.

(Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)