Howard, Inc. established a defined benefit pension plan two years ago. Details related to the pension plan are as follows:

$$ Defined benefit, noncontributory plan with immediate full vesting.

$$ Benefits paid at the end of each retirement year beginning at age $60.$

$$ Expected $11\%$ rate of return on plan assets.

December $31,20$X$4$ December $31,20$X$5$

Projected benefit obligation $$840,000$ $$1,336,000$

Fair & market$-$related value of plan assets $$869,8001,394,176$

Accumulated benefit obligation $700,000800,000$

Additional information:

$$ Howard funded $$440,000$ to the plan on December $31,20$X$5$

$$ Howard's discount is $10\%.$

$$ Average remaining service period of active employees is $20$ years.

$$ Service cost for $20$X$5$ is $$432,000.$

$$Howard did not award retroactive benefits when the plan was adopted.

$$ Unrecognized prior net gain on January $1,20$X$5$ was $$4,150.$

$$ Benefits paid $$20,000$

Calculate and record Howard's minimum required net periodic pension cost for $20$X$5.$ Debit Credit

Cash $$250,000$

Accounts Receivable $$757,800$

Inventory $$224,800$

Equity Investments $$205,000$

Valuation Account$-$Equity Investments

Available for Sale Debt Securities $$310,000$

Valuation Account$-$AFS Securities $$30,000$

Held to Maturity Securities $$107,000$

Land $$242,150$

Buildings $$394,000$

Accumulated Depreciation$--$Buildings $$(98,500)$

Equipment $$167,000$

Accumulated Depreciation$--$ Equipment $$(83,500)$

Tools $$100,000$

Accumulated Depreciation$--$ Tools $$(78,400)$

Right$-$to$-$use asset

Deferred Tax Asset

Interest Payable

Accounts Payable $$(75,000)$

Unearned Revenue $$(100,000)$

Prepaid$/$Accrued Pension Cost $$29,800$

Income Tax Payable

Obligations Under Capital Lease

Litigation Payable $$(30,000)$

Notes Payable $$(129,800)$

Bonds Payable

Discount on Bonds Payable

Deferred Tax Liability

Accumulated OCI$--$investments $$(30,000)$

Accumulated OCI$--$pension $$(4,150)$

Retained Earnings $$(599,000)$

Common Stock, $$\mathrm{.}20$ par value $$(100,000)$

Paid$-$in$-$capital in excess of par $$(300,000)$

Unrealized Gain$/$Loss$--$Trading Sec.

Unrealized Gain$/$Loss$--$AFS Sec.

Dividends $$20,000$

Sales $$(2,033,000)$

Sales Discounts $$9,200$

Purchases $$600,200$

Purchase Discounts $$(32,000)$

Freight$-$in $$24,800$

Salaries Expense $$139,600$

Utilities Expense $$18,800$

Repair Expense $$11,800$

Depreciation$/$Amortization

Interest Expense

Advertising Expense $$14,400$

Pension Cost

Insurance Expense $$7,000$

Litigation Expense $$30,000$

Income Tax Expense

Totals $$3,693,350$ $$(3,693,350)$