Sandhill, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 99 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 99 employees who are expected to receive benefits under the plan is 1,188. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,508,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year Service cost Projected benefit obligation Plan assets (at fair value) Expected return on plan assets Settlement rate $1,590,000 590,000 6,556,600 1,590,000 9% 8% Compute the pension expense recognized in 2021. Assume the prior service cost is amortized over the average remaining service life of the employees. Pension expense Prepare the journal entries to reflect accounting for the company's pension plan for the year ended December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Indicate the amounts that are reported on the income statement and the balance sheet for 2021. Sandhill, Inc. Income Statement (Partial) Sandhill, Inc. Balance Sheet (Partial) $ List of Accounts Testbank Problem 119 Accumulated Depreciation Accumulated Other Comprehensive Income Actuarial Loss on Defined Benefit Plan Cash Common Stock Cost of Goods Sold Depreciation Expense Interest Expense Inventory Notes Payable Other Comprehensive Income (G/L) Other Comprehensive Income (PSC) Pension Asset/Liability Pension Expense Plant and Equipment Postretirement Asset/Liability Postretirement Expense Retained Earnings Salary Expense Sales