As of January 1, 2017, Microblur Computer Company which reports under IFRS began a defined benefit pension plan that covers all 300 of its employees. Employment levels have remained constant and are expected to remain so in the future. Prior to 2017, rather than having a defined benefit plan the company had a defined contribution plan that had accumulated assets of $2,100,000 in market value All employees were retroactively grandfathered as to the defined benefit entitlements they would receive under the new plan. The company's insurance company, which is administering the pension plan, determined the following values effective on January 1, 2017: Plan assets at market value Accrued benefit obligation Initial asset (obligation) $2,100,000 $3,000,000 $(900000) The company's funding policy is to contribute annually on December 31 at a rate of 15% of covered employees' payroll. The annual payroll of employees covered by the pension plan amounted to $2,500,000 in 2017. Assume that all other cash inflows as well as expense accruals occur on the last day of the year. The insurance company provided the following information for 2017: Plan assets at market, December 31 Accrued benefit obligation, December 31 Current service costs relating to 2017 Payments to retirees Discount rate on obligations and expected return is 10% Required: $2,424,000 $2,964,000 $ 125,000 $ 40,000 Using a worksheet, calculate the pension expense for 2017 as well as the journal entry related to Microblur's pension plan. Clearly show all changes in plan assets, obligations a)