Rand Medical has a defined benefit pension for which the following pension-related data were available on December 31, 2005 (the end of the companys fiscal period): Projected benefit obligation (PBO): Balance, January 1, 2005 $1,800,000 Service cost 369,000 Interest cost, discount rate, 10% 180,000 Losses (gains) due to changes in actuarial assumptions in 2005 0 Pension benefits paid (189,000) Balance, December 31, 2005 $2,160,000 Plan assets: Balance, January 1, 2005 $ 1,350,000 Actual return on plan assets 135,000 (Expected return on plan assets, $120,000) Contributions 450,000 Pension benefits paid (189,000) Balance, December 31, 2005 $ 1,746,000 January 1, 2005, balances: Unrecognized past service cost (annual amortization $36,000) 216,000 Unrecognized net loss (amortization over 10 years, if needed) 210,000 Unrecognized transition cost 0 Intangible pension asset 0 Prepaid (accrued) pension cost (credit balance) $ (24,000) Required: 1. Calculate Rands 2005 pension expense. Show calculations. 2. Prepare Rands 2005 journal entry to record pension expense and funding. 3. Reconcile the funded status of the plan with the books at the end of 2005.