Splish Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company which administers the pension plan provided the following selected information for the years 2020, 2021, and 2022. For Year Ended December 31, 2020 2021 2022 Plan assets (fair value) Accumulated benefit obligation Projected benefit obligation $50,000 $84,900 $180,690 45,400 163,500 294,700 60,000 200,300 321,900 Net (gain) loss (for purposes of corridor calculation) Employer's funding contribution (made at end of year) 0 78,900 83,670 50,000 60,000 105,900 There were no balances as of January 1, 2020, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $60,000; 2021, $84,900; and 2022, $114,500. The average remaining service life per employee is 12 years. No benefits were paid in 2020, $30,100 of benefits were paid in 2021, and $18,600 of benefits were paid in 2022 (all benefits paid at end of year).