Problem

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $300,000 for 2016 and $390,000 for 2017. Year-end funding is $310,000 for 2016 and $320,000 for 2017. No assumptions or estimates were revised during 2016.

Required:

Calculate each of the amounts as of both December 31, 2016, and December 31, 2017.