On January 1, 2010, the Cromwell Company adopted a defined benefit plan for its employees. All the employees are the same age, retire at the same time, and have the same life expectancy after retirement. The following are the relevant facts concerning the pension plan factors and the employee characteristics:
Pension Plan Factors______________________________

Benefit formula Average of last four years ' salary 

Number of years of service x 0.025

Expected average of last four years ' salary $80,000 per employee

Annual pension benefit earned each year of service by each employee $80,000 _ 0.025 _ $2,000

Date of computation of pension expense and pension funding December 31

Amount funded each year Equal to annual service cost

Discount rate 10%

Expected long term (and actual) rate of return on plan assets 9%

Paid at end of each year

Plus one seventh of prior service cost in 2013 and 2014

Employee Characteristics__________________________

Number of employees 60

Age of employees 35Years

to retirement (at end of 2010) 25Years

life expectancy after date of retirement 14

For the years 2010 through 2014, the company experienced no net gain or loss in regard to the pension plan. On January 1, 2013, however, the company agreed to an amendment of the pension plan. This amendment changed the factor in the pension benefit formula from 0.025 to 0.03. This amendment was made retroactive to the adoption of the plan.

Required:

1. Prepare a schedule to compute the Cromwell Company 's pension expense for 2010 through 2014. Round to the nearest dollar.

2. Prepare all the journal entries related to Cromwell Company 's pension plan for 2010 through 2014.

3. What is Cromwell Company 's total accrued/prepaid pension cost at the end of 2014? Is it an asset or liability?