Defined benefit pension plan was initiated at the beginning of Year $1$ Retroactive benefits awarded but not funed on the adoption date $=$ $$2,180,000.$ Retro benefits to be amortized SL over average remaining service life of $16$ years.

Actuarial & funding info $($$$)$:

Year $1$:

Service Cost: $340,000$

Beginning PBO: $2,180,000$

Beginning Plan Asset FV: $0$

Discount Rate: $10\%$

Expected LT ROR: $-$

Actual ROR: $-$

Plan Contributions made on last day of year: $670,000$

Ending PBO: $-$

Ending Plan Asset FV: $-$

Year $2$:

Service Cost: $348,000$

Beginning PBO: $2,738,000$

Beginning Plan Asset FV: $670,000$

Discount Rate: $10\%$

Expected LT ROR: $9\%$

Actual ROR: $8\%$

Plan Contributions made on last day of year: $700,000$

Ending PBO: $3,359,800$

Ending Plan Asset FV: $1,423,600$

$1.$ Compute Pension Expense for Year $1$ and Year $2.$

$2.$ Prepare Pension Plan Journal Entrys for Year $1$ and Year $2.$

$3.$ Track balances in PBO & Plan Asset T accounts over the $2$ years. At the end of each year, indicate if a net pension asset or a net pension liability would be reported and specify the dollar amount.