Problem 1 ABC Company provides a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (fair value) Projected benefit obligation Pension asset/liability Prior service cost OCI - Loss $2,400,000 2,200,000 200,000 Dr. 300,000 260,000 The actuary and plan trustee provided the following additional data at December 31, 2020. The actuary estimates that salaries at retirement will be $100,000 The actuary estimates that retirement payments will be made for 20 years on average. The actuary estimates that it will be 20 years before the employees retire. Actual return on plan assets in 2020 180,000 Amortization of prior service cost 50,000 Contributions in 2020 500,000 Benefits paid retirees in 2020 350,000 Interest rate for liability 8% Expected return rate 10% Discount rate for PV computations 8% Average remaining service life of active employees 12 years Required: 1. Calculate the company's 2020 pension expense. Show all computations in good form. 2. Record all needed pension journal entries for 2020. 3. Create a schedule showing the change in PBO from Jan. 1 to Dec. 31, 2020