Latoya Company provides the following selected information related to its defined benefit pension plan for 2012.

Pension asset/liability (January 1)		$25,000	Cr.
Accumulated benefit obligation (December 31)		400,000
Actual and expected return on plan assets		10,000
Contributions (funding) in 2012		150,000
Fair value of plan assets (December 31)		800,000
Settlement rate		10	%
Projected benefit obligation (January 1)		700,000
Service cost		80,000

(a) Compute pension expense for 2012.

Prepare the journal entry to record pension expense and the employer