Pension data for Sam Adams 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, $430,000

January 1:PBO$3,030,000ABO2,030,000Plan assets3,230,000Amortization of prior service cost33,000Amortization of net gain7,300December 31:Cash contributions to pension fund$278,000Benefit payments to retirees313,000

Required:

1.Determine pension expense for the year.

2.Prepare the journal entries to record pension expense and funding for the year.