The Jayson Company has had a defined benefit pension plan for several years. At the end of 2018, Jayson had the following balances related to the plan:

Projected benefit obligation $980,000

Unrecognized prior service cost (remainder to be amortized over 10 years) 72,000

Unrecognized net loss 128,000

Plan assets (at fair value) 725,000

Pension liability 255,000

On 1/1/19, Jayson amended the plan to provide an increased amount of pension benefits; the prior service cost resulting from this amendment was $60,000. At 1/1/19, the average remaining service life of employees expected to receive benefits was 10 years.

The following information relates to the year 2019:

Service Cost $123,000

Settlement rate 9%

Expected rate of return on plan assets 8%

Plan contribution (at year-end) 90,000

Benefit payments to retirees (at year-end) 80,000

In 2019, Jaysons actual return on plan assets was $54,000. Jayson follows a policy of recognizing gains/losses on a delayed basis using the "corridor approach". In 2019, there were no changes in estimates and assumptions relating to computation of the projected benefit obligation.

Required:

a. Prepare Jaysons pension worksheet, and prepare the journal entry that Jayson would make to record the expense calculated.

b. Prepare the pension note to the 12/31/19 financial statements.