On January 1, 2021, Ivanhoe Co. had the following balances:

Projected benefit obligation		$7,440,000
Fair value of plan assets		7,440,000

Other data related to the pension plan for 2021:

Service cost		319,000
Contributions to the plan		463,000
Benefits paid		454,000
Actual return on plan assets		472,000
Settlement rate		9%
Expected rate of return		6%

Questions

a)Determine the projected benefit obligation at December 31, 2021. There are no net gains or losses.

b)Determine the fair value of plan assets at December 31, 2021.

c)Calculate pension expense for 2021.

d)Prepare the journal entry to record pension expense and the contributions for 2021.

Account Titles and Explanation	Debit	Credit