On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,290,000 on that date (which it did not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January 1, 2016:

Employee	Expected Years of Future Service
A	1
B	3
C	4
D	5
E	5
F	6

Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Bazniks pension expense, in addition to the amortization of the prior service cost for 2016 and 2017:

	2016	2017
Service cost	$386,800	$410,683
Interest cost on projected benefit obligation	116,800	174,737
Expected return on plan assets		93,000

Baznik contributed $799,800 and $759,200 to the pension fund at the end of 2016 and 2017, respectively.

Required:

1.	Next Level Prepare a set of schedules for Baznik to determine (a) the amortization fraction for each year and (b) the amortization of the prior service cost.
2.	Next Level Prepare all the journal entries related to Bazniks pension plan for 2016 and 2017.

Prepare a table summarizing the lease receipts and interest revenue earned by the lessor. Additional Instructions

Score: 46/54

Berne Company

Lease Payments Received and Interest Revenue Earned Summary

2016 - 2019

1	Date	Annual Lease Payment Received	Interest Revenue at 12% on Net Investment	Amount of Net Investment Recovered	Lease Receivable	Unearned Interest: Leases	Net Investment
2	January 1, 2016
3	December 31, 2016
4	December 31, 2017
5	December 31, 2018
6	December 31, 2019