On January 1, 2018, McGee Co. had the following balances:

Projected benefit obligation		$7,470,000
Fair value of plan assets		7,470,000

Other data related to the pension plan for 2018:

Service cost		322,000
Contributions to the plan		466,000
Benefits paid		457,000
Actual return on plan assets		451,000
Settlement rate		9%
Expected rate of return		6%

Determine the projected benefit obligation at December 31, 2018. There are no net gains or losses.

Determine the fair value of plan assets at December 31, 2018.

Calculate pension expense for 2018.

Prepare the journal entry to record pension expense and the contributions for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)