Carli Company adopted a defined benefit pension plan on January 1, 2018, and funded the entire amount of its 2018 pension expense. The following information pertains to the pension plan for 2019 and 2020:

There are no other components of Carli’s pension expense.

Required:
1. Compute the amount of Carli’s pension expense for 2019 and 2020.
2. Prepare the journal entries to record the pension expense for 2019 and 2020.
3. Next Level If the actual return on plan assets was greater than the expected return in 2019 how would it effect the calculation of pension expense?

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2019 2020 Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded 12/31) $200,000 180,000 180,000 212,000 $215,000 396,200 406,400 220,000 Discount rate 9% 9% Expected long-term (and actual) rate of return on plan assets 8% 8%