Keeton Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan.

   

The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $400,000 in 2012 and $475,000 in 2013. The accumulated OCI (PSC) on January 1, 2012, was $1,260,000. No benefits have been paid.

Instructions
(Round to the nearest dollar.)
  (a) Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2012 and 2013.
  (b) Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2012 and 2013.
  (c) Determine the total amount of pension expense to be recognized by Keeton Company in 2012 and 2013.