Pension data for Sam Adams Inc. include the following for the current calendar year: Discount rate, 10% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, $410,000 January 1: PBO $ 3,010,000 ABO 2,010,000 Plan assets 3,210,000 Amortization of prior service cost 31,000 Amortization of net gain 7,100 December 31: Cash contributions to pension fund $ 276,000 Benefit payments to retirees 311,000
Required:
1. Determine pension expense for the year.
2. Prepare the journal entries to record pension expense and funding for the year.