Write an accounting essay about 300-400 words as the file required.

Duffner Corporation is a medium-sized manufacturer of paperboard containers and boxes. The corporation sponsors a noncontributory, defined benefit pension plan that covers its 250 employees. Sid Caesar has recently been hired as president of Duffner Corporation. While reviewing last year's financial statements with controller Imogene Coca, Caesar expressed confusion about several of the items in the footnote to the financial statements relating to the pension plan. In part, the footnote reads as follows. Note J. The company has a defined benefit pension plan covering substantially all of its employees. The benefits are based on years of service and the employee's compensation during the last four years of employment. The company's funding policy is to contribute annually the maximum amount allowed under the federal tax code. Contributions are intended to provide for benefits expected to be earned in the future as well as those earned to date. The net periodic pension expense on Duffner Corporation's comparative income statement was $72,000 in 2012 and $57,680 in 2011. The following are selected figures from the plan's funded status and amounts recognized in the Duffner Corporation's Statement of Financial Position at December 31, 2014 ($000 omitted). Actuarial present value of benefit obligations: Accumulated benefit obligation (including vested benefits of $636) $ (870) Projected benefit obligation $(1,200) Plan assets at fair value 1,050 Projected benefit obligation in excess of plan assets $ (150) Given that Duffner Corporation's work force has been stable for the last 6 years, Caesar could not understand the increase in the net periodic pension expense. Coca explained that the net periodic pension expense consists of several elements, some of which may increase or decrease the net expense. Required: Prepare an essay in good form about 300-400 words, discussing the items below with respect to the reporting above as you would for an employer or client. Cite the information above to enhance your explanation with examples, posing feasible explanations for the reported information. Identify the ASC references that support the pension accounting. a. The determination of the net periodic pension expense is a function of six elements (pp.495496). Discuss what could explain the difference recorded in 2012 vs. 2011, addressing each of the elements as they could apply. b. Describe the major difference and the major similarity between the accumulated benefit obligation and the projected benefit obligation. c. Explain why pension gains and losses are not recognized on the income statement in the period in which they arise. d. Briefly describe how pension gains and losses are recognized. a. Discuss the theoretical justification for accrual recognition of pension costs. b. Discuss the relative objectivity of the measurement process of accrual versus cash (payas-you-go) accounting for annual pension costs