Latoya Company provides the following selected information related to its defined benefit pension plan for 2014:

Pension asset/liability (Jan 1) $ 25,000 Credit

Accumulated benefit obligation (Dec 31) $ 400,000

Actual and expected return on plan assets $ 10,000

Contributions (funding) 2014 $ 150,000

Fair value of plan assets (Dec 31) $ 800,000

Settlement rate 10%

Projected benefit obligation (Jan 1) $ 700,000

Service cost $ 80,000

(a) Compute pension expense and prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2014. Preparation of a pension worksheet is not required. Benefits paid in 2014 were $35,000.

(b) Indicate the pension-related amounts that would be reported in the company's income statement and balance sheet for 2014.