Hanna Company has 200 employees who are expected to receive benefits under the company's defined-benefit pension plan. On January 1, 2014, Hanna Company amended its pension plan which caused an increase of $400,000 in its projected benefit obligation. The total number of service-years of these employees is 2,000. Selected Information about the pension plan of Hanna Company is as follows: 2014 2015 Projected benefit obligation, 1/1 $2,100,000 $2,340,000 Projected benefit obligation, 12/31 2,340,000 2,940,000 Fair Value of Plan Assets, 1/1 1,680,000 2,460,000 Fair Value of Plan Assets, 12/31 2,460,000 2,550,000 Accumulated OCI - Gains, 1/1 Settlement rate 10% 10% Expected rate of return 8% 8% Service cost 210,000 234,000 Contributions 400,000 420,000 Benefits paid to retirees 300,000 310,000 Total service years 200 160 2016 $2,940,000 3,180,000 2,550,000 2,945,000 304,000 10% 8% 294,000 460,000 320,000 100 1. Calculate the pension expense for 2016. 2. Prepare the journal entries to record the pension expense and the company's funding of the pension plan for 2016