Klondike Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years2014 and 2015. 2014 2015Projected benefit obligation, January 1 $600,000Plan assets (fair value and market-related value), January 1 410,000Pension asset/liability, January 1 190,000 Cr.Prior service cost, January 1 160,000Service cost 40,000 $ 59,000Settlement rate 10% 10%Expected rate of return 10% 10%Actual return on plan assets 36,000 61,000Amortization of prior service cost 70,000 50,000Annual contributions 97,000 81,000Benefits paid retirees 31,500 54,000Increase in projected benefit obligation due to changes in actuarial assumptions 87,000 -0-Accumulated benefit obligation at December 31 721,800 789,000Average service life of all employees 20 yearsVested benefit obligation at December 31 464,000Instructions(a)For both years 2014 and 2015, compute the annual pension expense.(b)Prepare the journal entries to reflect all pension plan transactions and events at December 31 of each year