On January 1, 2016, Parkway Company adopted a defined benefit pension plan. At that time, Parkway awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund). Parkway decided to amortize this cost by the straight-line method over the 16 year average remaining service life of its active participating employees. Parkway€™s actuary and funding agency have also provided the following additional information for 2016 and 2017:

Parkway contributed $670,000 and $700,000 to the pension fund at the end of 2016 and 2017, respectively. There arc no other components of Parkway€™s pension expense. At the end of 2017, the projected benefit obligation was $3,359,800 and the fair value of the pension plan assets was $1,430,300.
Required:
1. Compute the amount of Parkway€™s pension expense for 2016 and 2017.
2. Prepare all the journal entries related to Parkway€™s pension plan for 2016 and 2017.
3. What is the total accrued/prepaid pension cost at the end of 2 017? Is it an asset or a liability?

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2016 2017 340,000 348,000 2,180,000 2.738,000 670,000 10% 9% Service cost Projected benefit obligation 1/11 Plan assets [/1 Discounl rale Expected longHerm land adtuall rate of return on plan assets 10%