Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6]

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2016 and $200,000 for 2017. Year-end funding is $160,000 for 2016 and $170,000 for 2017. No assumptions or estimates were revised during 2016.

Required:

Calculate each of the following amounts as of both December 31, 2016, and December 31, 2017: (Enter you answers in thousands (i.e., 200,000 should be entered as 200).)

PBO:

Plan assets:

Pension expense:

Net pension asset or net pension liability: