On January 1, Year 1, Satchmo leases a kibble machine from Pops! Inc. Pops! Inc. is a. dealer in used and new kibble machines 1. Satchmo will pay $10,000 at the beginning of each year. 2. Satchmo's borrowing rate and Pops! implied rate are both 10% 3. The machine is carried in Pops! Inc.'s inventory at $18,000. 4. At the end of the lease the machine will be returned to Pops! Inc. with a guaranteed residual value of $1,500. 5. Satchmo expects the value to be only $500. Provide the entries for all three years. Suppose instead of 4 and 5 there is a bargain purchase of $1,500 at the end of year 3 and the asset has an economic life of 5 years with zero residual value. Suppose at the end of Year 0 the PBO is $100 and the plan assets are $95. There is a $10 debit balance in accumulated other comprehensive income for unexpected gains and losses Year 1: - Service Cost of $35 - Settlement rate = expected return =10% - Actual return is $12 - The firm contributed $30 - The plan paid benefits to retirees of $5. Year 2: - On January 1, the firm increased its retirement benefit increasing the PBO for employees already in the plan by $30. - Service Cost of $45 - Settlement rate = expected return =10% - Actual return is $15 - The firm contributed $80 - Amortization of prior service cost was $6 - The plan paid benefits to retirees of $10. - The actuary estimates the PBO to be $230 at year end