PENCOMP's balance sheet at December 31, 2014, is as follows.

Additional information concerning PENCOMP's defined benefit pension plan is as follows.
Projected benefit obligation at 12/31/14...................................................... .....$ 820.5
Plan assets (fair value) at 12/31/14............................................................... .....476.5
Unamortized past service cost at 12/31/14................................................. ...........150.0
Amortization of past service cost during 2015................................................. .......15.0
Service cost for 2015................................................................................ .....42.0
Discount rate................................................. .............................................10%
Expected rate of return on plan assets in 2015................................................. ......12%
Actual return on plan assets in 2015................................................................... 10.4
Contributions to pension fund in 2015................................................................ 70.0
Benefits paid during 2015............................................................................. 40.0
Unamortized net loss due to changes in actuarial assumptions
and deferred net losses on plan assets at 12/31/14.................................................. 92.0
Expected remaining service life of employees....................................................... 15.0
Average period to vesting of prior service costs..................................................... 10.0
Other information about PENCOMP is as follows.
Salary expense, all paid with cash during 2015................................................. $ 700.0
Sales, all for cash.................................................................................... 3,000.0
Purchases, all for cash.............................................................................. 2,000.0
Inventory at 12/31/15............................................................................... 1,800.0
Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $200 in 2015.
Accounting
Prepare an income statement for 2015 and a balance sheet as of December 31, 2015. Also, prepare the pension expense journal entry for the year ended December 31, 2015. Round to the nearest tenth (e.g., round 2.87 to 2.9)
Analysis
Compute return on equity for PENCOMP for 2015 (assume stockholders' equity is equal to year-end average stockholders' equity). Do you think an argument can be made for including some or even all of the change in accumulated other comprehensive income (due to pensions) in the numerator of return on equity? Illustrate that calculation.
Principles
Explain a rationale for why the FASB has (so far) decided to exclude from the current period income statement the effects of pension plan amendments and gains and losses due to changes in actuarial assumptions?

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PENCOMP, INC. BALANCE SHEET As OF DECEMBER 31, 2014 Liabilities Notes payable Pension liability Total liabilities Assets Cash $1,000 $ 438 1,800 Inventory 344 Total current assets Plant and equipment Accumulated depreciation 1,344 2,238 2,000 (240) Stockholders' equity Common stock Retained earnings Accumulated other comprehensive income 2,000 896 (242) 2,654 1,760 Total assets $3,998 Total stockholders' equity Total liabilities and stockholders' equity $3,998