Econfina, Inc. on January 1, 20X8 initiated a noncontributory, defined benefit pension plan that grants benefits to its 100 employees for services rendered in years prior to the adoption of the pension plan. The total expected service years of the 100 employees who are expected to receive benefits under the plan is 1,200. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1,20X8 was $5,040,000. On December 31,20X8 the following information was provided concerning the pension plan's operations for its first year Projected benefit obligation Accumulated benefit obligation Market value of plan assets Service cost Employer contribution Expected return on plan assets Settlement rate 6,000,000 5,090,000 1,600,000 600,000 1,600,000 9% 8% REQUIRED: (1)What is the prior service cost at January 1, 20X8? Compute the pension expense that should be recognized in 20X8. Assume the prior service cost is amortized over the average remaining service life of the employees. Prepare the general journal entries, in proper form, to reflect accounting for the company's pension plan for the year ended December 31,20X8. Provide a brief explanation for your entry Indicate the amounts that are reported on the income statement and the balance sheet for 20X8 (2) (3) (4)