The following information is available from Haan Company relating to its defined benefit pension plan: Balances as of January 1, 2003: Rension-obligationsitabilitve. senmt.s cotere cen ome ceetette mieten era eat ceca) cscs crete eee ee memo $3,500 RPenslonmmUindiaSSetss.. d.clajou. soe ate Qed.» acpucites bene eae) AMS ee ee a eee eee 3,000 Activity for 2003: SErvicercost Sut) AM as EEL BENT EES T21b 2. ORES TAL Oe ay enn. ac eae ae $ 400 Contributions:to:ipension: fund = ¢ce0 44 o5ce4 we outers teres eo cee gee gee eee 230 Benefitvpayments’to:retirees:-24 1 2 oe eae eee

a, ets, «si dus leu ehpyiciie es ete eet eee ere 170 Return On: PlaMraSSetSneres cco oye crete rece ac a ealtte teltntiad nc ik: Sonepat ene aca 330 Pension=relateditinteresticosSts so rcctay ccs secce stare et clea et coer cualceet cre een tien Ate tet iesneeMen mo 280 1. Compute the amount of pension expense to be reported on the income statement for 2003. 2. Determine the net pension amount to be reported on the balance sheet at the end of the year. Note: The benefit payments to retirees are made out of the pension fund assets. These payments reduce both the amount in the pension fund and the amount of the remaining pension obligation. 3. Interpretive Question: You are an employee of Haan Company and have just received the above information as part of the company’s annual report to the employees on the status of the pension plan. Does anything in this information cause you concern? Explain.