Welsa Manufacturing, Inc. offers a noncontributory, defined-benefit pension plan to its employees. The average remaining service life of employees is 10 years. The company provides you with the following information for the year ended December 31, 2023:

There were no benefits were paid during the year.

Required:

a. Compute the total pension expense recognized in 2023. Assume the prior service cost is amortized over the average remaining service life of the employees.

b. Prepare the journal entry to record pension expense for the year ended December 31, 2023.

c. Indicate the amounts that are reported on the income statement and the balance sheet for 2023.

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Employer's contribution at end of year Service cost Projected benefit obligation - beginning of the year Plan assets (at fair value market-related value) beginning of the year Expected return on plan assets Settlement rate Actual return on plan assets Cost of plan amendment retroactive to January 1 $1,600,000 600,000 6,043,200 4,000,000 9% 8% $360,000 400,000