U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2015:

Plan assets $400,000

Projected benefit obligation 320,000

U.S.M.s actuary determined that 2016 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2016, and retirees were paid $44,000 from plan assets.

Determine the following amounts at the end of 2016:

Pension Expense

Projected Benefit Obligation

Plan Assets

Net Pension Asset

Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.