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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

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 $120,000 $130,000
Projected benefit obligation (1/1) 90,000 219,000
Plan assets (1/1) 90,000 223,000
Company contribution (funded 12/31) 124,000 140,000
Discount rate 10% 10%
Expected long-term (and actual) rate of return on plan assets 10% 10%

There are no other components of Barons pension expense.

Required:

1. Compute the amount of Barons pension expense for 2016 and 2017.
2. Prepare the journal entries to record the pension expense for 2016 and 2017.

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