Question: Marrow Company has a defined benefit pension plan . Marrow received the following information from its actuaries for 2017 . In addition, the following information is provided: Based on historical experience, the expected return on the plan assets has been 10%. The 2017amortization of prior service costs is $8 million. Prior service was incurred in 2014 when the plan was amended. There is no place in the OCI gain/loss account at January 1,2017.1.2.3.
Required 1. Determine the pension expense for 2017
2. Prepare the journal entries necessary to record the pension activity for the year.Specifically, explain whether the pension plan is over or underfunded at the end of 2017.