Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining service life of 10 years. The following information is available for 20X1 and 20X2 related to the pension plan:

Bonny Corp. had no beginning balance in its AOCI—net actuarial (gain) loss on January 1, 20X1. The actuarial (gains) losses on PBO arose due to changes in assumptions made by the actuaries regarding salary increases (20X1) and mortality estimates (20X2).

Required:

1. Compute Bonny’s PBO at December 31, 20X1, and December 31, 20X2.

2. Compute the fair value of plan assets at December 31, 20X1, and December 31, 20X2.

3. Compute the funded status of the plan at December 31, 20X1, and December 31, 20X2.

4. Compute the year-end balance in AOCI—net actuarial loss (gain) for Bonny Corp. for 20X1 and 20X2.

5. Compute OCI for the years ended December 31, 20X1, and December 31, 20X2.

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20X2 20X1 Projected benefit obligation, 1/1 Service cost Actual return on plan assets Bonny Corp. contributions for year ended 12/31 Benefits paid during year Fair value of plan assets, 1/1 Actuarial (gain) loss on PBO during year Expected return on plan assets ? $750,000 $ 70,000 60,000 66,400 72,000 74,000 68,000 67,000 60,000 ? 600,000 (13,000) 7% 4,400 7% Discount rate 6% 6%