Answer:
A.$7,831,000
B.$7,754,000
C.$527,900
Explanation:
(a)Projected benefit obligation, January 1 $7,310,000
Service cost 306,000
Interest cost (9% × $7,310,000) 656,900
Benefits paid (441,000)
Projected benefit obligation, December 31
$7,831,000
(b)Fair value of plan assets, January 1 $7,310,000
Actual return 435,000
Contributions 450,000
Benefits paid(441,000)
Fair value of plan assets, December 31 $7,754,000
(c)Service cost $306,000
Interest cost (9% × $7,310,000)656,900
Actual (and expected) return on plan assets(435,000)
Pension expense$527,900
(d) Dr Pension expenses $527,900
Cr Pension asset/liability and Cash $527,000
