Oriole, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 94 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 94 employees who are expected to receive benefits under the plan is 1,128. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,448,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year.

Employer's contribution at end of year $1,540,000

Service cost 540,000

Projected benefit obligation 6,531,600

Plan assets (at fair value) 1,540,000

Expected return on plan assets 9%

Settlement rate 8%

Indicate the amounts that are reported on the income statement and the balance sheet for 2021.