Teal Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2017. The insurance company which administers the pension plan provided the following selected information for the years 2017, 2018, and 2019.
For Year Ended December 31, 2017 2018 2019
Plan assets (fair value) $50,000 $84,700 $179,270
Accumulated benefit obligation 45,500 165,000 294,300
Projected benefit obligation 60,000 199,600 322,900
Net (gain) loss (for purposes of corridor calculation) 0 78,600 81,445
Employer's funding contribution (made at end of year) 50,000 60,000 104,800
There were no balances as of January 1, 2017, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the company's pension obligation was 13% in 2017, 11% in 2018, and 8% in 2019. The service cost component of net periodic pension expense amounted to the following: 2017, $60,000; 2018, $84,700; and 2019, $118,300. The average remaining service life per employee is 12 years. No benefits were paid in 2017, $30,300 of benefits were paid in 2018, and $18,700 of benefits were paid in 2019 (all benefits paid at end of year).
Calculate the amount of net periodic pension expense that the company would recognize in 2017, 2018, and 2019. (Round answers to 0 decimal places, e.g. 2,525.)
Prepare the journal entries to record net periodic pension expense, employer's funding contribution, and related pension amounts for the years 2017, 2018, and 2019.