PEP Corporation has a defined benefit pension plan. As of January 1, the following balances exist: For

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PEP Corporation has a defined benefit pension plan. As of January 1, the following balances exist:

For the year ended December 31, the current service cost as determined by an appropriate actuarial cost method was $330,000. Improvements in benefits created a past service cost of $800,000. A change in actuarial assumptions created a gain of $15,000 in the year. The expected return on plan assets was $72,000; however, the actual return is $70,000. PEP paid $325,000 to the pension trustee in December. 


Required:

Prepare the journal entries for the pension for the year.

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