Headland Company sponsors a defined benefit pension plan for its employees. The following data refers to the operation of the plan for the years 2020 and 2021.

		2020			2021
Projected benefit obligation, January 1		$ 604,400
Plan assets (fair value and market-related value), January 1		413,300
Pension asset/liability, January 1		191,100	chrome
Previous service cost, January 1		159,200
cost of service		40.000			$58,500
settlement rate		10	%		10	%
expected rate of return		10	%		10	%
Actual return on plan assets		36,000			61,600
Amortization of the cost of the previous service		69,300			50,000
annual contributions		96,700			81.400
benefits paid retirees		31,600			54,040
Increase in projected benefit obligation due to changes in actuarial assumptions		86,300			0
Accrued benefit obligation as of December 31		722,000			792,600
Average useful life of all employees.					20 years
Obligation for benefits acquired as of December 31					465,900

Required

1.Prepare a pension return that presents the years 2020 and 2021.

2.  Prepare journal entries to reflect all pension plan transactions and events as of December 31 of each year.

3. For the year 2021, indicate the pension amounts reported in the financial statements.