ABC Company provides a defined-benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan.

Plan assets (fair value) $2,400,000

Projected benefit obligation 2,200,000

Pension asset/liability 200,000 Dr.

Prior service cost 300,000

OCI Loss 260,000

The actuary and plan trustee provided the following additional data at December 31, 2020.

• The actuary estimates that salaries at retirement will be $100,000
• The actuary estimates that retirement payments will be made for 20 years on average.
• The actuary estimates that it will be 20 years before the employees retire.
• Actual return on plan assets in 2020 180,000
• Amortization of prior service cost 50,000
• Contributions in 2020 500,000
• Benefits paid retirees in 2020 350,000
• Interest rate for liability 8%
• Expected return rate 10%
• Discount rate for PV computations 8%
• Average remaining service life of active employees 12 years

Required:

1. Calculate the companys 2020 pension expense. Show all computations in good form.
2. Record all needed pension journal entries for 2020.
3. Create a schedule showing the change in PBO from Jan. 1 to Dec. 31, 2020.