14. Robert, Inc. on January 1, 2018 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 100 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 100 employees who are expected to receive benefits under the plan is 1,200. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2018 was $5,880,000. On December 31, 2018 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year $1,600,000 Service cost 600,000 Projected benefit obligation 6,561,600 Plan assets (at fair value) 1,600,000 Expected return on plan assets 9% Settlement rate 8% Instructions (Points 10) (a) Compute the pension expense recognized in 2018. Assume the prior service cost is amortized over the average remaining service life of the employees. (b) Prepare the journal entries to reflect accounting for the company's pension plan for the year ended December 31, 2018. Indicate the amounts that are reported on the income statement and the balance sheet for 2018