Please provide me with the CORRECT ANSWER TO THIS QUESTION. THIS QUESTION IS GRA

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Please provide me with the CORRECT ANSWER TO THIS QUESTION. THIS QUESTION IS GRADED. i WOULD GREATLEY APPRECIATE IT IF YOU COULD PROVIDE EXPLANATION ASWELL. THANK YOU VERY MUCH.

Daniels company sp relates to the operation of the plan for the year 2017 onsors a defined benefit pension plan for employees. The following data Accumulated benefit obligation January 1 Vested benefit obligation, January 1 Projected Benefit obligation, January 1 Plan assets Januarv l 2017 575000 480,000 650,000 410,000 AOCI- Unrecognized prior service cost. January 1 AOCI- Unrecognized gain, January l Relevent information for 2017 includes the following information Service Cost Interest Rate (Settlement Rate) Expected Rate of Return Actual return on plan assets 160,000 75,000 40,000 10.00% 8.00% 36,000 50,000 31,500 10 years ontribution made by company to trust in 2017 Benefits paid retirees in 2017 Average remaining service period 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 orl osses. Al. Prepare a pension worksheet for 2017. Be sure to calculate the January 12017 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 rustee accounts. A2. Show your corridor calculation in the space provided here. B. Prepare the journal entry for pension expense for 2017

Explanation / Answer

a. Pension Worksheet Daniels Company Pension worksheet - 2017 General Journal Entries Memo Record Items Annual Pension Expense Cash OCI: Prior Service Cost OCI:(Gains)/Losses Pension Asset/ (Liability) Projected Benefit Obligation Plan Assets Balance January 1,2017 $160,000 ($75,000) ($240,000) ($650,000) $410,000 (a)Service Cost $40,000 ($40,000) (b)Interest Cost $65,000 ($65,000) ( c )Expected /actual return ($36,000) $36,000 (d)Unexpected gain $3,200 ($3,200) (e)Contributions ($50,000) $50,000 (f)Benefit paid to retirees $31,500 ($31,500) (g)Amortization of prior period cost $16,000 ($16,000) (h)Amortization of gain/losses ($7,500) $7,500 Journal entry for 2017 $80,700 ($50,000) ($16,000) $4,300 ($19,000) Accumulated OCI, 1/1/2017 $160,000 ($75,000) Balance, December 31, 2017 $144,000 ($70,700) ($259,000) ($723,500) $464,500 Expected return = $410000 x 8% = $32800 Actual return = $36000 Unexpected gain = $36000-$32800 = $3200 Interest cost = $650000 x 10% = $65000 Corridor method of amortization Plan Assets PBO 10% of larger Unrecognized gain Remaining service life Amortization 1-Jan-17 $480,000 $650,000 $65,000 $75,000 $10 7500 Journal Entry for 2017 Pension expense $80,700 OCI-Gains $4,300 OCI-Prior period cost $16,000 Cash $50,000 Pension Liability $19,000

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