Write a memo to Persoff. In the memo, do the following:

Explain to Persoff how the composition of the total pension expense can create the situation she sees. Briefly describe the components of pension expense. Include a description of how the service cost component is reported in the income statement.

Briefly explain how pension gains and losses are recognized in earnings.

Describe for her the differences and similarities between the accumulated benefit obligation and the projected benefit obligation.

Explain how the $$Projected benefit obligation in excess of plan assets$$ is reported in the financial statements.