Penn Manufacturing Company offers a defined-benefit pension plan to its salaried employees. The following information summarizes events related to the Penn pension plan for 2015 through 2017.

Required
a. Provide the necessary computations and journal entries for Penn Manufacturing for 2015, 2016, and 2017.
b. Prepare the worksheet that summarizes the income statement and balance sheet activity and the pension journal entries for 2015, 2016, and 2017.

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2015 2016 Plan assets at the beginning of the year (at fair value, which is assumed to equal the marketrelated asset value) Projected benefit obligation (PBO) at the beginning of the year 680,000 Solve $680,000 38,880 $40,320 $41,760 8% 6% 42,000 37,500 30,240 36,000 40,000 45,000 25,000 30,000 ,000 Settlement rate Expected return on plan assets Actual return on plan assets Contributions for the year Benefit payments for the year Prior service costs granted on 1/1/2015 Amortization of prior service costs Decrease in the ending projected benefit obligation due to changes in actuarial assumptions ie., actuarial gain) Average remaining service life of employee base 8% 6% 8% 6% 10,000 2,000 2,000 0 97600 5 years 5 years 5 years