On December 31, 2013, Palmer Company determined that the 2013 service cost on its defined benefit pension plan was $120,000. At the beginning of 2013, Palmer had pension plan assets of $520,000 and a projected benefit obligation of $600,000. Its discount rate (and expected long-term rate of return on plan assets) for 2013 was 10%. There are no other components of Palmer's pension expense; the company had an accrued/prepaid pension cost liability at the end of 2012.

Required:

1. Compute the amount of Palmer's pension expense for 2013.

2. Prepare the journal entry to record Palmer's 2013 pension expense if it funds the pension plan in the amount of

(a) $128,000 and

(b) $120,000.