The accountant for Vaden Corporation has developed the following information

for the companys defined benefit pension plan for 2018:

Service cost - $650,000

Actual return on plan assets - 315,000

Annual contribution to the plan - 550,000

Amortization of prior service cost - 32,000

Benefits paid to retirees - 265,000

Settlement rate - 6%

Expected rate of return on plan assets - 5%

Balances at January 1, 2018 were Pension Asset/Liability of $400,000 (Cr);

Projected Benefit Obligation -$8,150,000 (Cr); Plan Assets - $7,750,000 (Dr);

Other Comprehensive Income - Prior Service Costs - $185,000 (Dr).

Required (15 points):

a. Complete the pension work sheet for 2018.

b. Prepare the journal entry to reflect the accounting for the companys pension

plan for the year ending December 31, 2018.