Problem 1 (20%) Sheehan Bank Corp. has a defined benefit pension plan that covers all its full-time employees. The chief accountant obtained the following data relating to the pension plan in 2014: Defined benefit obligation, Dec. 31, 2013 $424,000 Benefits paid to retirees in 2014 28,000 Current service cost for 2014 26,800 Actual return on plan assets for 2014 19,800 Fair value of plan assets, Dec. 31, 2013 312,000 Contributions to the pension fund at year-end 2014 31,000 Past service cost: from changes made in 2014 to the plan that increased pension benefits for service years prior to 2014. 14,800 Actuarial revaluation: made at the end of 2014 that increased pension liability because of a revision upward of salary increase rates for employees Long-term interest rate on high-quality, corporate bonds 19,200 6% 1. Calculate all the elements of pension expense for 2014 and make journal entries at the end of year.