On January 1, 2019, 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 -yeal average remaining service life of its active participating employees. Smith's actuary has alsc provided the following additional information for 2019 and 2020: (1) service cost: 2019, $145,000;2020,$154,000; (2) expected (and actual) return on plan assets: 2020,$33,000; and (3) projected benefit obligation: 1/1/2020,$1,520,000. The discount rate was 10% in both 2019 and 2020 . Smith contributed $330,000 and $350,000 to the pension fund at the end of 2019 and 2020, respectively. There are no other components of Smith's pension expense. Required: 1. Compute the amount of Smith's pension expense for 2019 and 2020 . 2. Prepare all the journal entries related to Smith's pension plan for 2019 and 2020 . 3. Next Level If the prior service cost was vested, explain how Smith's pension expense for 2019 would be different under amended IAS 19 . CHART OF ACCOUNTS Smith Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 251 Accrued/Prepaid Pension Cost 261 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 522 Pension Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings 916 Other Comprehensive Income: Prior Service Cost Next Level 3. If the prior service cost was vested, what amount would Smith recognize as pension expense for 2019 under amended IAS 19