Larson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2013, the following balances related to this plan.

Plan assets (market-related value)              $270,000
Projected benefit obligation                          340,000
Pension asset/liability                                     70,000 Cr.
Prior service cost                                            90,000
OCI—Loss                                                       39,000

As a result of the operation of the plan during 2013, the actuary provided the following additional data at December 31, 2013.

Service cost for 2013                                                      $45,000
Actual return on plan assets in 2013                                27,000
Amortization of prior service cost                                    12,000
Contributions in 2013                                                       65,000
Benefits paid retirees in 2013                                           41,000
Settlement rate                                                                        7%
Expected return on plan assets                                                8%
Average remaining service life of active employees        10 years

Instructions
  (a) Compute pension expense for Larson Corp. for the year 2013 by preparing a pension worksheet that shows the journal entry for pension expense.
  (b) Indicate the pension amounts reported in the financial statements.