Presented below is information related to Stage Department Stores, Inc. pension plan for 2018.

Service cost $1,100,000 Funding contribution for 2018 1,060,000 Settlement rate used in actuarial computation 10% Expected return on plan assets 9% Amortization of PSC (due to benefit increase) 180,000 Amortization of unrecognized net gains 96,000 Projected benefit obligation (at beginning of period) 1,080,000 Fair value of plan assts (at beginning of period) 720,000

Instructions

1.Compute the amount of pension expense to be reported for 2018. (Show computations.)

2.Prepare the journal entry to record pension expense and the employers contribution for 2018.