The following defined pension data of Eagle Homes Corporation apply to the year 2014.

Projected benefit obligation, January 1, 2014 (before amendment) $1,255,000

Plan assets, January 1, 2014 1,195,600

Pension liability, January 1, 2014 59,400

On January 1, 2014, Eagle Home Corp., through plan amendment,

grants prior service benefits having a present value of 200,000

Settlement rate 6%

Service cost 69,000

Contributions (funding) 85,000

Actual and expected return on plan assets 43,610

Benefits paid to retirees 52,000

Prior service cost amortization for 2014 25,000

1. Using the preceding data, compute pension expense for the year 2014.

2. Find out the ending balance of PBO and PA

3. Prepare the journal entry to record pension expense.

Please show your calculations.