Osvaldo Awning Co. has prior service cost of $1,262,000 arising from a pension plan amendment. The board of directors decided to amortize this cost over the average remaining service period for its 45 employees on a straight-line basis. It is assumed that employees will retire at the rate of three employees each year over a 15-year period.

1. Compute the average remaining service life and the annual amortization of prior service cost for Osvaldo.

2. Assume that pension expense other than amortization of prior service cost was $460,000 for the year and also assume that all of this amount is associated with service cost, interest cost, and actual return on plan assets (meaning that actual return equaled expected return this year). Also assume that $520,000 was contributed by the employer to the pension fund. Prepare the summary journal entries to record pension expense and the pension contribution for the current year.