The company established a defined benefit plan at the end of last year. Compute the project benefit obligation, pension expense, plan asset, and whether the plan is (under) or over funded for the current year. Discount rate and expected rate of return is 6%.

400 employees started working with initial salary of $45,000.

Assume employee will work for 40 years and will benefit for 30 years.

Pension formula: 4% X 40 years X final salary of? Projected benefit obligation 1/1/xx 6% for years increase.

Service costs for year-employees earned $4000 each to be in retirement.

Expected rate of return is 6% on plan assets valued at $4,000,000 1/1/xx.

Contributions/ (paid) out to the plan for the year was $100,000/$100,000.

Prior year service costs for 20 employees $300,000.

2 employees retire yearly and use the service method actual loss for the year $200,000.