-0- HRC Company sponsors a defined benefits pension plan to its employees. On January 1, 2021, the balances related to pension plan were as follows: Projected benefit obligation (PBO) $4,600,000 Fair value of plan assets $4,500,000 AOCI Prior service cost AOCI gain/loss -0- The discount (or settlement) rate applicable to the plan is 10%. On December 31, 2021, the company amends the pension agreement resulting in a prior service cost of $800,000. The company uses straight- line amortization of prior service costs over the average remaining service life of the employees. Other data related to the pension plan are as follows: Service cost Contributions (funding) to the plan Benefits paid Actual return on plan assets Increase in PBO due to changes in actuarial assumptions Expected return on plan assets Average service life of all employees 2021 $150,000 500,000 220,000 300,000 450,000 2022 $170,000 880,000 280,000 350,000 -0- 10% 10% 20 years Required: Using the Excel template provided (or you can use your own template as well): 1. Prepare Pension worksheet for the year 2021 and 2022 in Excel. Make sure to include all accompanying computations at the bottom of the worksheet (such as amortization of gain/losses). 2. Prepare the necessary journal entries for each year associated with the pension plan for HRC. 3. What different amount(s)/ balances will be reported in the income statement and balance sheet at the end of year 2021 and 2022