1. (18 points) M Service Co. reported the following for its defined-benefit pension plan for 2016:

2. Service cost $440,000

   Actual return on plan assets 167,000

   Benefits paid to retirees 195,000

   Cash contributions made by M to the pension plan 25,000

   Stock contributions made by M to the pension plan; 1,000 shares of M common stock; par value $1 per share; fair value at the time of the contribution was $18 per share.

   Settlement rate 4.20%

   Expected rate of return on plan assets 5.80%

   Average remaining service life of existing employees 10 years

   Projected benefit obligation as of 12-31-15 3,100,000

   Fair value of plan assets as of 12-31-15 3,265,000

   Other comprehensive income prior service cost as of 12-31-15 30,000 dr

   Other comprehensive income Gains/Loss as of 12-31-15 340,000 cr

   M amortizes its prior service cost on a straight-line basis over the average remaining service life of its existing employees.

   Changes in actuarial assumptions resulted in a required 12-31-16 PBO of $3,750,000

3. Using the above information for M, prepare a pension work sheet for 2016
4. Using the work sheet, prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2016.
5. Will M need to record corridor amortization for 2017, yes or no? Support your answer mathematically.