Problem #5 Pension Expense Calculations and Entries Tree Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2021, the company had the following information: a a. Projected benefit obligation (actuary's report): Balance, January 1, 2021 $150,000 Service cost 40,000 Interest cost ($150,000 x 5% actuary's rate) 7,500 Loss (gain) change in actuarial assumptions (400) Pension benefits paid (42,000) Balance, December 31, 2021 $155,100 Accumulated benefit obligation $110,000 Vested benefit obligation 80,000 Average remaining service period, 10 years Expected rate of return 8% Status of fund assets (trustee's report): Balance, January 1, 2021 (PPA) $160,000 Actual retum on plan assets 16,000 Cash from employer 30,000 Pension benefits paid (42.000) Balance, December 31, 2021 S164.000 From internal records - unrecognized pension costs: Prior service cost 20,000 Unrecognized losses (gains) (20.000) b. REQUIRED: 1. Compute pension expense for 2021. 2. Give the employer's pension entries at December 31, 2021