Micro Computers Inc. sponsors a defined benefit pension plan for its employees. It is now the 20X2 fiscal year. Long-term corporate borrowing rates for companies with this risk profile are 5%. Information with respect to the pension plan is as follows:

Required:
1. Calculate the SFP net defined benefit liability as of 31 December 20X1.
2. Calculate the net defined benefit liability as of 31 December 20X2 by calculating the defined benefit obligation and the fair value of plan assets at 31 December 20X2.
3. Analyze the three elements of pension accounting for 20X2: service cost, net interest, and remeasurements. Prepare entries, and also an entry for the contribution to the fund during 20X2.
4. Calculate the SFP net defined benefit liability as of 31 December 20X2, reflecting requirement 1 and the entries in requirement 3, and compare this with the net result in requirement 2.

Current service cost for 20X2 Fair value of plan assets, 31 December 20X1 Benefits paid to retirees during 20X2 $ 175,200 1,936,000 214,900