The following information is available for Mitten Corporation€™s pension plan. Mitten reports under private enterprise accounting standards.

On January 1, 2011, Mitten Corp. amended its pension plan, resulting in past service costs with a present value of $78,000. The amendment of the pension plan is expected to provide future benefits for three years.
Instructions
(a) Identify the plan€™s funded status as the asset or liability reported on the December 31, 2011, 2012, and 2013 balance sheets assuming that Mitten Corp. accounts for its pension with the deferral and amortization approach under PE GAAP.
(b) Calculate pension expense for 2011, 2012, and 2013 assuming that Mitten Corp. accounts for its pension with the deferral and amortization approach under PE GAAP.
(c) Identify the plan€™s funded status as the asset or liability reported on the December 31, 2011, 2012, and 2013 balance sheets assuming that Mitten Corp. accounts for its pension with the immediate recognition approach.
(d) Calculate pension expense for 2011, 2012, and 2013 assuming that Mitten Corp. accounts for its pension with the immediate recognition approach.
(e) Which method results in a better measure of expense over the three-year period?
(f) Which method results in a better measure of the funded status on the balance sheet?

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2011 2012 2013 Accrued benefit obligation, funded basis Accrued benefit obligation, accounting basis Fair value of plan assets Service cost Discount rate and expected return Actual return on plan assets Contributions (funding) Benefits paid to retirees $155,000 175,000 165,000 35,000 1% 8% 44,000 24,000 47,250 7% 6% 44,000 26,000 52,500 7% 44,000 28,000