I. (4 Points) Briefly explain the following terms: (a) Service cost (b) Interest cost (c) Prior service cost (d) Vested benefits e) Market-related asset value. (f) Actual return on plan assets. (g) Expected return on plan assets. (h) Unexpected gains and losses on plan assets. II. (5 Points) Hughey Co. as lessee records a capital lease of machinery on January 1, 2018. The seven annual lease payments of $875,000 are made at the end of each year. The present value of the lease payments at 10% is $4,260,000. Hughey uses the effective-interest method of amortization and straight line depreciation (no residual value) Instructions (Round to the nearest dollar.) (a) Prepare an amortization table for 2018 and 2019. (b) Prepare all of Hughey's journal entries for 2018 including depreciation. I. (4 Points) Briefly explain the following terms: (a) Service cost (b) Interest cost (c) Prior service cost (d) Vested benefits e) Market-related asset value. (f) Actual return on plan assets. (g) Expected return on plan assets. (h) Unexpected gains and losses on plan assets. II. (5 Points) Hughey Co. as lessee records a capital lease of machinery on January 1, 2018. The seven annual lease payments of $875,000 are made at the end of each year. The present value of the lease payments at 10% is $4,260,000. Hughey uses the effective-interest method of amortization and straight line depreciation (no residual value) Instructions (Round to the nearest dollar.) (a) Prepare an amortization table for 2018 and 2019. (b) Prepare all of Hughey's journal entries for 2018 including depreciation