Zac Brown company sponsors a defined benefit pension plan for employees. The following data relates to the operation of the plan for the year 2017.

2017

Accumulated benefit obligation January 1575000

Vested benefit obligation, January 1480,000

Projected Benefit obligation, January 1650,000

Plan assets January 1410,000

AOCI- Unrecognized prior service cost , January 1 160,000

AOCI- Unrecognized gain, January 175,000

Relevent information for 2017 includes the following information

Service Cost 40,000

Interest Rate (Settlement Rate) 10.00%

Expected Rate of Return 8.00%

Actual return on plan assets36,000

Contribution made by company to trust in 201750,000

Benefits paid retirees in 2017 31,500

Average remaining service period 10 years

Unrecognized prior service cost amortized on straight-line basis based on average remaining service life. The company uses the corridor method for amortization of unrecognized gains or losses.

A1. Start a pension worksheet for 2017. Be sure to calculate the January 1 2017. Balance in the pension asset/Liability Account. Determine Pension expense for 2017 and indicate ending balance in all pension accounts on the company`s books and trustee accounts.

A2. Show your corridor calculation in the space provided here.

B. Prepare the journal entry for pension expense for 2017.

C.If net income is 950,000 (including the pension expense) what is comprehensive income?

Net Income 950,000

UG+L (?)

PSC ?

____________

Comprehensive Income

D.Indicate below the presentation and balance on 12/31/2017. Balance Sheet for Zac Brown of all accounts

Assets Liabilities

Current Assets Current Liabilities

Long term Assets Long Term Liabilities

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