Carli Company adopted a defined benefit pension plan on January 1, 2018, and funded the entire amount of its 2018 pension expense. The following information pertains to the pension plan for 2019 and 2020:

2019

2020

Service cost

$200,000

$215,000

Projected benefit obligation (1/1)

180,000

396,200

Plan assets (1/1)

180,000

406,400

Company contribution (funded 12/31)

212,000

220,000

Discount rate

9%

9%

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

8%

8%

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

Required:

1.	Compute the amount of Carlis pension expense for 2019 and 2020.
2.	Prepare the journal entries to record the pension expense for 2019 and 2020.
3.	Next Level If the actual return on plan assets was greater than the expected return in 2019 how would it effect the calculation of pension expense?