Sam’s Golden Lab Corp. (SGL) maintains a defined benefit pension plan for its employees. On January 1, 2019, SGL finalized the sale of a business segment to Gretta’s Great Kittens Ltd. (GGK). Terms of the sale required SGL’s pension trust to pay $1,600,000 to GGK’s pension trust, to provide for the pension obligation relating to the group of employees that continued to work for the business unit that was sold. The accrued benefit obligation pertaining to these employees was $1,400,000.

Required:

Prepare the journal entry for Sam’s Golden Lab Corp. to record this settlement.