Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017:

2016 2017

Service cost $160,000 $172,000

Projected benefit obligation (1/1) 120,000 289,600

Plan assets (1/1) 120,000 294,600

Company contribution (funded 12/31) 165,000 175,000

Discount rate 8% 8%

Expected long-term (and actual) rate of return on plan assets 8% 8%

There are no other components of Baron's pension expense.

Required:

1. Compute the amount of Baron's pension expense for 2016 and 2017.

2. Prepare the journal entries to record the pension expense for 2016 and 2017.