Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The

Question:

Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The remaining amortization period at December 31, 2016, for prior service cost is 5 years. The average remaining service life of employees is 11 years at January 1, 2017, and 10 years at December 31, 2017. The AOCI-net actuarial (gain) loss was zero at December 31, 2016. Turner smooths recognition of its gains and losses when computing its market-related value to compute expected return.

Additional Information:

Required:
Round all amounts to the nearest dollar:
1. Compute the amount of prior service cost that would be amortized as a component of pension expense for 2017 and 2018.
2. Compute the actual return on plan assets for 2017.
3. Compute the unexpected net gain or loss on plan assets for 2017.
4. Compute pension expense for 2017.
5. Prepare the company's required pension journal entries for 2017.
6. Compute the 2017 increase/decrease in AOCI-net actuarial (gain) loss and the amount to be amortized in 2017 and 2018.
7. Confirm that the pension asset (liability) on the balance sheet equals the funded status as of December 31, 2017.