The Hooper Company, a publicly accountable entity, operates a defined benefit plan for its employees. Data for the plan for the years 20x3 and 20x4 are as follows: 20x3 20x4 Defined benefit obligation, beginning of year $13,560,000 Plan assets, beginning of year 9,540,000 Current service cost - end of year 1,340,000 1,400,000 Benefits paid to retirees - end of year 670,000 720,000 Contributions to pension plan - end of year 1,500,000 3,500,000 Actual return on pension plan assets 430,000 675,000 The yield on high quality corporate bonds is 5%. On July 1, 20x4, Hooper sold one of its subsidiaries. As a result of this, the subsidiary's employees were transferred out of the pension plan. This caused the defined benefit obligation do go down by $658,000. A payment of $695,000 was made from the pension plan assets to the subsidiary's employees. On December 31, 20x4, the actuary performed an audit of the defined benefit obligation and estimated the balance at $15,200,000. Required - For each of the 20x3 and 20x4 years, prepare the reconciliation of the defined benefit obligation and plan assets from beginning to end of year and write the summary journal entry to record the pension expense and related accounts