The following data relate to a defined benefit pension plan for Hollistir Co$.$

Fair value of plan assets, Jan. $1$$$22,400$PBO Jan. $1,$ not including any items below$28,000$PSC from amendment dated Jan. $1(10$ years is the amortization period$)14,000$Gain from change in actuarial assumptions, computed as of Jan. $14,200$Actual return on plan assets$2,800$Contributions to plan assets$5,600$Benefits paid to retirees$7,000$Service cost$12,600$Discount rate$8\%$Expected rate of return on plan assets$10\%$

Required$$

a$.$ Compute pension expense for the year. Hollistir amortizes the full pension gain$/$loss over average service life$$of $15$ years, using the straight$-$line method.

Pension expenseAnswer $1$

b$.$ Compute PBO at December $31.$

PBO, Dec. $31$Answer $2$

c$.$ Compute fair value of plan assets at December $31.$

Fair value of plan assets, Dec. $31$