The accountant for Cleanfree Corporation has developed the following information for the company's defined-benefit pension plan for 2020:

Service cost $500,000

Actual return on plan assets 260,000

Annual contribution to the plan 900,000

Amortization of prior service cost 105,000

Benefits paid to retirees 60,000

Settlement rate 10%

Expected rate of return on plan assets 8%

The projected benefit obligation at December 31, 2019 (beginning balance for 2020), is $4,000,000.

The value of the Plan Assets at December 31, 2019 (beginning balance for 2020), is $2,500,000.

The beginning balance for the year in AOCI-Prior Service Cost is $625,000.

Instructions

Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2020.