7. B-Problems - Show all your work 1. Rebecca, Inc. on January 1, 2020 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 100 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 100 employees who are expected to receive benefits under the plan is 1,200. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2020 was $5,880,000. On December 31, 2020 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year Service cost Projected benefit obligation Plan assets (at fair value) Expected return on plan assets Settlement rate $1,600,000 600,000 6,561,600 1,600,000 9% 8% Instructions (a) Compute the pension expense recognized in 2020. Assume the prior service cost is amortized over the average remaining service life of the employees. (b) Prepare the journal entries to reflect accounting for the company's pension plan for the year ended December 31, 2020. (c) Indicate the amounts that are reported on the income statement and the balance sheet for 2020 for Rebecca, Inc. (Answer on the next page) (4 X 3=12)