Preparing Pension Journal Entries and Pension Worksheet Mac Company has a noncontributory defined benefit pension plan, with the following data available. Account Balances Jan. 1, 2020 PBO balance, before PSC adjustment $72,000 Cr. Prior service cost (due to plan amendment on Jan. 1, 2020) 8,000 Dr. Plan Asset balance 84,000 Dr. 2020 $52,000 0 Activity Service cost Pension benefits paid Actual and expected return on plan assets Cash funding (contributions) Pension benefits paid to retirees 4,000 40,000 0 2. Calculate interest cost assuming a discount rate of 8%. $ . Compute net pension expense. Assume that prior service cost will be amortized over a 10-year average remaining service period. Pension expense, 2020 $ C. Provide the 2020 entries for Mac Company related to the defined benefit pension plan. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Account Name Dr. cr. Date Jan. 1, 2020 To record deferral of prior service costs Dec. 31, 2020 To record pension expense Dec. 31, 2020 To record plan funding