Pension data for Ceci Inc. include the following for the current calendar year:

Discount rate, 8%

Expected return on plan assets, 10%

Actual return on plan assets, 9%

Service cost, $400,000

January 1:

PBO

3,000,000

ABO

2,000,000

Plan assets

3,200,000

Amortization of prior service cost

30,000

Amortization of net gain

7,000

December 31:

Cash contributions to pension fund

$275,000

Benefit payments to retirees

310,000

Required:

1)Determine pension expense for the year.