Hiatt Toothpaste SA initiates a defined benefit pension plan for its 50 employees on January 1, 2022. The insurance company which administers the pension plan provided the following selected information for the years 2022, 2023, and 2024.

There were no balances as of January 1, 2022, when the plan was initiated. The actual return on plan assets was 10% over the 3-year period, but the discount (interest) rate was 13% in 2022, 11% in 2023, and 8% in 2024. The service cost component of net periodic pension expense amounted to the following: 2022, €60,000; 2023, €85,000; and 2024, €119,000. No benefits were paid in 2022, €30,000 of benefits were paid in 2023, and €18,500 of benefits were paid in 2024 (all benefits paid at end of year).

Instructions
a. Calculate the amount of net periodic pension expense that the company would recognize in 2022, 2023, and 2024.

b. Prepare the journal entries to record net periodic pension expense, employer’s funding contribution, and related pension amounts for the years 2022, 2023, and 2024.

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For Year Ended December 31, 2022 2023 2024 Plan assets (fair value) €50,000 € 85,000 €180,000 Vested benefit obligation 45,000 165,000 292,000 Defined benefit obligation 60,000 200,000 324,000 Net (gain) loss -0- 78,900 5,800 Employer's funding contribution (made at end of year) 50,000 60,0o0 105,000