On January 1, 2020, McGee Co. had the following balances:

Projected benefit obligation $7,400,000

Fair value of plan assets 7,000,000

Other data related to the pension plan for 2020:

Service cost 315,000

Contributions to the plan 459,000

Benefits paid 450,000

Actual return on plan assets 444,000

Settlement rate 9%

Expected rate of return 6%

Average service periods (for amortization) 8yrs

(a) Determine the projected benefit obligation at December 31, 2020. There are no net gains or losses.

(b) Determine the fair value of plan assets at December 31, 2020.

(c) Calculate pension expense for 2020 and prepare the journal entry to record pension expense and the contributions for 2020.

(d) Assume that the beginning balance of net gains (OCI) is $ 1,050,000. Determine the projected benefit obligation and pension expense at December 31, 2020.