8. Your company has a defined-benefit pension plan. You have the following information about the plan:

• At the end of last year, the plan's projected benefit obligation and fair value of plan assets was $630,000 and $430,000, respectively.

• The plan also had $93,800 of prior service costs as well as $189,000 of unexpected net losses in accumulated other comprehensive income at the end of last year.

• The plan incurred service cost of $38,500 during the year, and $27,500 should be amortized out of accumulated prior service costs this year based on the company's 8.3% settlement rate and 10-year average employee service life.

• While the expected return rate on plan assets was 6.8%, the actual return rate was 6.7%.

• While no benefits were paid out of the plan since no one has retired on the plan yet, the company already contributed $34,900 to the plan at the start of the year (and properly decreased the amount of the net pension liability as a result).

Prepare the notes to the financial statements using the information above.