K&K Inc.'s management has provided us with a discount rate of 6% to be used for the valuation of the defined benefit obligation (DBO) and expected return on Plan assets. Based on assumptions provided as detailed in our report, current service cost for Year 2 was determined at the end of the year to be $52,000. During the year, K&K Inc. has changed the Plan as follows: -Employees who are hired as permanent employees, and who previously workedunder short-term contracts, can now have service credit for a portion of their timein their contract roles. The increase in the DBO (valued at December 31, Year 2) related to the above Plan change was determined to be $37,000. Adjustment to the DBO during Year 2 for actuarial losses was $3,540. Intermediate Financial Reporting 2 Unit 5 Task-Based Simulation #1 Simulation 3 / 3 Appendix II: Excerpts from the trust company statement for the pension plan K&K Inc. Pension Plan Fund Statement Summary at December 31, Year 2 Interest and dividends received from the Plan assets during Year 2 $37,300 Contributions to the Fund made on December 31, Year 2 $70,000 Benefits paid from the Fund on December 31, Year 2 $28,000