1. Presented below is information related to the Chester Corporation pension plan for 2020.

Service cost 325,000

Funding contribution for 2020 390,000

Settlement rate used in actuarial computation 4%

Losses on plan assets 24,000

Amortization of PSC (due to benefit increase) 90,000

Amortization of net gains 28,000

Projected benefit obligation (at beginning of period) 450,000

Fair value of plan assets (at beginning of period) 450,000

Instructions

(a) Compute the amount of pension expense to be reported for 2020.

(b) Prepare the journal entry to record pension expense and Chesters contribution for 2020.