Problem 1. Pension plan calculations 15 points. The following information is for the pension plan for the employees of Reese, Inc. 12/31/2007 12/31/2008 Fair value of plan assets 1,232,000 1,408,000 Accumulated benefit obligation 1,125,000 1,540,000 Projected benefit obligation 1,216,000 1,600,000 AOCI--Net (gain) or loss (170,000) (192,000) Expected rate of return 7% 6% Settlement rate 8% 8% Reese's contribution was $208,000 in 2008 and benefits paid were $112,000. Reese estimates that the average remaining service life is 10 years. Please answer the following questions using the "Pension" tab in the Excel file provided.

Provide computational support to your answer.

(a) Calculate the interest cost for 2008.

(b) Calculate the actual return on plan assets in 2008.

(c) Calculate the unexpected gain or loss in 2008 and identify if it is a gain or loss.

(d) Calculate the corridor for 2008.

(e) Calculate the amortization of the net gain for 2008, using the corridor approach.