The Jackson Company adopts defined benefit pension plan as of January 1, YR11. The formula for determining the amount of each employee's annual pension check is (1%)* years of service) *(highest salary)

All employees will be given full credit for work performed prior to the plan's inception. The Jackson Company has a single employee, Scott Brooks, who will retire on December 31, YR15. Jackson expects Scott will receive 15 retirement checks. Scott has worked for Jackson for exactly 20 years as of January 1, YR11. His salary for the calendar year YR11 is 100,000 and his salary will grow 5 percent each year until his retirement (4 years of growth). The Jackson Company uses a settlement rate of 10% and expects an 8% return on plan assets.

1. Determine Jackson's prior service cost as of January 1, YR11.

2.Determine the YR11 service cost (as of 12/31/YR11) for Scott's pension.

3.Jackson would like to have Scott's pension fully funded by retirement dato, December 31, YR15 . They would like to accomplish this objective by making equal annual payments on December 31 of every year until Scott retires (including the day of Scott's retirement). Calculate the amount of each annual pension contribution.

4.What are the balances for the following accounts as of 12/31/ YR11Also, specify whether Pension Asset/Liab has a DR or CR balance by typing in either DR or CR in the last column.

PBO. Plan Asset. Plan Asset/Liab. DR or CR?

_____. ____________. __________________. ___________