On January 1, 2016, Smith Company adopted a defined benefit pension plan. At that time, Smith awarded retroactive benefits to its employees, resulting in a prior service cost that created a projected benefit obligation of $1,250,000 on that date (which it did not fund). Smith decided to amortize the prior service cost by the straight-line method over the 20-year average remaining service life of its active participating employees. Smiths actuary has also provided the following additional information for 2016 and 2017: (1) service cost: 2016, $147,000; 2017, $153,000; (2) expected (and actual) return on plan assets: 2017, $33,000; and (3) projected benefit obligation: 1/1/2017, $1,522,000. The discount rate was 10% in both 2016 and 2017. Smith contributed $330,000 and $350,000 to the pension fund at the end of 2016 and 2017, respectively. There are no other components of Smiths pension expense.

Required:

1.	Compute the amount of Smiths pension expense for 2016 and 2017.
2.	Prepare all the journal entries related to Smiths pension plan for 2016 and 2017.
3.	If the prior service cost was vested, explain how Smiths pension expense for 2016 would be different under amended IAS 19.