Faste Ltd. has a defined benefit pension plan. The following information relates to this plan:

Required:
1. Compute the defined benefit obligation at 31 December 20X1 and the fair value of plan assets on the same date.
2. Analyze the three elements of pension accounting for 20X1: service cost, net interest, and remeasurements. Prepare entries and also an entry for the contribution to the fund during 20X1.
3. Calculate 20X1 earnings after pension expense is recorded. Ignore any income tax. Show how the pension accounts would be reported on the SCI, the statement of changes in
equity, and the SFP as of 31 December 20X1. Prove that the SFP liability account represents the net defined benefit position of the pension plan.

SFP net defined pension liability, 1 January 20X1 Defined benefit pension obligation, 1 January 20X1 $793,500 ??