Answer and Explanation:
(a)Projected benefit obligation,
January 1 $7,800,000
Service cost 315,000
Interest cost (9% × $7,800,000) 702,000
Benefits paid(450,000)
Projected benefit obligation, December 31 $8,367,000
b)Fair value of plan assets, January 1 $7,800,000
Actual return 468,000
Contributions 459,000
Benefits paid(450,000)
Fair value of plan assets, December 31 $8,277,000
(c)Service cost $315,000
Interest cost (9% × $7,800,000) 702,000
Actual (and expected) return on plan assets(468,000)
Pension expense $549,000
(d)
Dr Pension Expense 549,000
Cr Cash 549,000
