The accountant for Smith Corp. developed the following information for the defined benefit plan in 2014Service Cost$200,000Actual return on plan assets$100,000Employer’s cash

The accountant for Smith Corp. developed the following information for the defined benefit plan in 2014Service Cost$200,000Actual return on plan assets$100,000Employer’s cash contributions$200,000Current Years amortization ofunrecognized prior service costs$40,000Benefits paid to retirees this year$24,000Settlement rate, 10% of beginningbalanceExpected return on plan assets8% of beginning balanceProjected benefit obligation at beginnning of year.$1,100,000Fair value of plan assets at beginning of year$1,100,000At the end of 2014, the union workers at Smith Corp. threatened to go on strike unlessbenefits were increased. On Jan. 1, 2015, the company agreed to amend its pension plan byincreasing future pensionbenefits to workers based on prior service rendered. The unrecognizedprior service costs arising from this were calculated to be $250,000 and are not included in the beginningbalance of the projected benefit obligation.A.Complete the pension sheet below for 2014 and any related journal entries.PensionProjectedPension Exp.Cash Gain/Loss Asset/LiabilityPSCBenefit ObligationJournal Entries123456Plan Asset78B.Determine the net effect of the pension plan on the employers financial statementsfor 2015. What was the net effect of the pension transactions on:Total assets during 2015: $___________Increase or DecreaseTotal liabilities during 2015: $___________Increase or DecreaseTotal owners equity during 2015 $_________Increase or DecreaseNet Income for 2015: $__________ Increase or DecreaseC.1. did the financial position of the pension fund get better or worse during the yearhealth by the end of the year and why?d in the beginningSunset Company entered into a non cancelable lease agrement on Jan. 1, 2015 whereby it willlease equipment from Sunrise Company. The following data are relevant to the lease agreementA. the term of the lease is 4 years. The lessor has set 4 annual payments of $58,365 to be due atDec. 31 of each year beginning Dec. 31, 2015. the required return expected by the lessor is 8% APR. the annual paymof $58,365 includes $1,000 of “executory costs” for property taxB. the fair value of the equipment on Jan. 1, 2015 is $190,000 and it has an economic life of 5 years with nosalvage value. Sunset depreciates similar machinery using the straight line methodC. Sunset does not know Sunrise’s implicit rate of return on the lease. Sunset has determined its incremental borrow8% APRD. Title to the equipment remains with Sunrise and no bargain purchase option existsE. The cost of the equipment to Sunrise is $190,000. Collectability of payments is reasonably predictable and nouncertainties surround the unreimbursed costs yet to be incurredInterest Factors from TablesFuture value of single sum, 4 period. 8%, 1.36049Present Value of single sum, 4 period 8%, 0.73503Future value of an ordinary annuity, 4 period, 8%, 4.50611Present Value of an ordinary annuity, 4 periods, 8%, 3.31213Present Value of an annuity due, 4 periods, 8%, 3.577101 Indicate the type of lease to the lessee and lessor and the criteria used to get this answer.Explain why2 Prepare an amortization schedule for the lease3 Prepare all journal entries on the books of the lessee for 20154 Prepare all journal entries on the books of the lessor for 2015sor is 8% APR. the annual paymentsife of 5 years with normined its incremental borrowing rate to beonably predictable and no