Problem #1 Tucker, Inc, on January 1, 2021, initiated a noncontributory, defined-benefit pension plan that grants benefits to its 100 employees for services rendered in years prior to the adoption of the penion plan. The total expected service years of the 100 employees who are expected to receive benefits under the plan is 1,200. An actuarial consulting firm has indicated that the present value of the PBO on January 2, 2021 was $5,880,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employers's contribution at the end of the year $1,600,000 Service Cost 600,000 PBO 6,561,600 Plan Assets (at fair value) 1,600,000 Expected Return on plan assets 9%

Settlement Rate 8% Compute the penson expense recognized in 2021. Assume the PSC is amortized over the average remaining service life of the employees. Prepare the journal entries to reflect accounting for the company's pension plan for the year ended Dec, 31, 2021. Indicate the amounts that are reported on the Income Staatment and the Balance Sheet for 2021.