An Corporation has the following defined benefit pension plan balances on January 1, 2020:

Projected benefit obligation:$2,500,000

Fair Value of Plan Assets: $2,500,000

Other details: Interest (settlement) rate applicable to plan: 8%

On January 1, 2021, the company amends itspension agreement so prior service costs are created: $900,000

2020 2021

Other data:

Service Cost: 340,000 375,000

Prior Service Cost amortization: 0 121,000

Contributions (Funding) to plan: 276,000 318,000

Benefits Paid: 240,000 306,000

Actual Return on Plan Assets: 75,000 150,000

Expected Return on plan assets: 4% 5%

Instructions:

(a) Prepare the pension worksheet for the pension plan fo 2020 and for 2021.

(b) Prepare the journal entries that would be needed on December 31, 2020 and 2021.

(c) The company hires an actuary to re-estimate the Projected Benefit Obligation as of December 31, 2021.The actuary estimates the value to be

$4,200,000.How will this impact the journal entry for pension expenses on December 31, 2021?

Please show work