A non-La Salle accounting graduate gathered some pension data for Commerce Mill Company. The data indicated the following for the current year:

• Service cost was $100,000;
• interest cost was $60,000;
• plan assets on January 1stwere $800,000;
• the expected return on plan assets was 10%;
• the actual return on plan assets was 12%; and
• the amortization of net losses was $2,000.

You are a La Salle graduate and you know how to read GAAP. You go to the Accounting Standards Codification (ASC) and find topic ASC 715 (Compensation - Retirement Benefits), where you learn that, in addition to the items above,prior service costsshould be included in the calculation of pension expense. Specifically, the standard says:

"...prior service cost shall be amortizedas a component of net periodic pension costby assigning an equal amount to each future period of serviceof each employee active at the date of the amendment who is expected to receive benefits under the plan." (ASC 715-30-35-11).

You then go to the actuary's report and find that Commerce Mill had incurred prior service costs of $60,000 at the beginning of the previous year due to a plan amendment increasing the projected benefit obligation (PBO). You also learn that the average remaining service life of employees expected to receive benefits under the plan is 10 years.

Required:

[1]Determine pension expense for the year.

[2]Prepare the journal entry necessary to record the current year's pension expense.