Rico Corporation initiated a defined benefit pension plan on January 1 of Year 1. The plan does not provide any retroactive benefits for existing employees. The pension funding payment is made to the trustee on December 31 of each year. The following information is available for Year 1 and Year 2. Year 1 Year 2 Service cost $75,000 $82,500 Funding payment (contribution) 85,000 92,500 Interest on projected benefit obligation 7,500 Actual and expected return on plan assets 9,000 c. Prepare the journal entries to record (1) pension expense and (2) plan funding for Year 2