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.

Accrued benefit obligation Plan assets (at market value) Interest rate on obligations $2,400,000 1,440,000 5%