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Sally is exactly 62 years old on 1/1/YR10. As of this date, she has worked for Firm X for 20 years. She is expected to retire on 1/1/YR13 (at the age of 65), and is expected to have a 10-year retirement period. Firm X established a defined benefit pension plan on 1/1/YR10. The pension formula is as follows: (2%) x (# years of service) x (highest salary) Firm X plans to fund its pension fund equally at the end of each year, YR10, YR11, and YR12. Sally's expected salary is as follows: Year Salary YR10 $80,000 YR11 $85,000 YR12 $90,000 The expected rate of return on plan assets is 8%. The settlement rate is 10%. (1) Calculate the amount of prior service costs relating to Sally. (2) Calculate the annual amortization of prior service costs. (3) Calculate the service cost for Sally for YR10, YR11, and YR12. (4) Calculate the amount of the funding check that Firm X will pay every year to fund Sally's retirement. (5) Produce a pension table for YR10 and YR11. (6) Record the journal entry Firm X will record for YR10 and YR11. Sally is exactly 62 years old on 1/1/YR10. As of this date, she has worked for Firm X for 20 years. She is expected to retire on 1/1/YR13 (at the age of 65), and is expected to have a 10-year retirement period. Firm X established a defined benefit pension plan on 1/1/YR10. The pension formula is as follows: (2%) x (# years of service) x (highest salary) Firm X plans to fund its pension fund equally at the end of each year, YR10, YR11, and YR12. Sally's expected salary is as follows: Year Salary YR10 $80,000 YR11 $85,000 YR12 $90,000 The expected rate of return on plan assets is 8%. The settlement rate is 10%. (1) Calculate the amount of prior service costs relating to Sally. (2) Calculate the annual amortization of prior service costs. (3) Calculate the service cost for Sally for YR10, YR11, and YR12. (4) Calculate the amount of the funding check that Firm X will pay every year to fund Sally's retirement. (5) Produce a pension table for YR10 and YR11. (6) Record the journal entry Firm X will record for YR10 and YR11

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