Verna Company has had a defined benefit pension plan for several years. At the end of 2016, Verna accumulated the following information: (1) service cost for 2016, $127000; (2) Projected benefit obligation, 1/1/2016, $634,000; (3) discount rate, 9%; (4) plan assets, 1/1/2016 $589000; and (5) expected long term rate of return on plan assets, 9%. There are no other components of Vefrna pension expense. Verna had an accrued/prepaid pension cost liability at teh end of 2016. Verna contributed $128000 to the pension plan at teh end of 2016

Required

Compute the amount of Verna's pension expense for 2016 and prepare the related journal entry.