Q. Joan Inc. started a pension plan on January 1, 2014. At that date, prior service cost of $1,100,000 was granted to employees. At December 31, 2014, the following information was available:

Service cost for 2014 $90,000

Fair value of plan assets $ 225,500

Projected benefit obligation $ 1, 278,000

Employer contribution for 2014 (at 12/31) $225,500

Expected assets return rate 7 %

Discounted rate: 8 %

Average remaining service life 16 years

Required:

Compute the pension expense for 2014

Prepare appropriate journal entries for 2014