Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.
|Plan assets (fair value), December 31||$754,920||$916,920|
|Projected benefit obligation, January 1||756,000||864,000|
|Pension asset/liability, January 1||151,200||Cr.||?|
|Prior service cost, January 1||270,000||259,200|
|Actual and expected return on plan assets||25,920||32,400|
|Amortization of prior service cost||10,800||12,960|
|Accumulated benefit obligation, December 31||540,000||594,000|
Compute pension expense for 2020 and 2021.
|Pension expense for 2020||
|Pension expense for 2021||
Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
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