1/ Edamame Corp. had the following measures for its pension plan during the current year.

Beginning PBO	700,000		Beginning plan assets		568,000
Service cost	87,000		Annual contribution		150,000
Benefits paid	40,000		Expected long term rate of return		8%
Discount rate	5%		Actual return		42,300

Assuming no other relevant info, calculate pension expense for the year.

2/ On 1/1/Y1 Day Corp. entered into a 10 year lease agreement with Ward, Inc. for industrial equipment. Annual lease payment of

The present value of an ordinary annuity at
	8% for 10 years is 6.7101
	12% for 10 years is 5.6502
The present value of $1 at
	8% for 10 years is 0.4632
	12% for 10 years is 0.3220

a/ Is this a finance lease or an operating lease for Day? How can you tell?

b/ Prepare the 1/1/Y1 journal entry to record the lease on Days books

c/ Prepare the 12/31/Y1 JE on Days books to record the first annual lease payment

d/ Prepare the 12/31/Y1 JE on Days books to record annual amortization expenses.