Osvaldo Awning Co. has unrecognized prior service cost of $1,262,000 arising from a pension plan amendment. The board of directors decided to amortize this cost over the average remaining service period for its 45 employees on a straight-line basis. It is assumed that employees will retire at the rate of three employees each year over a 15-year period.

1. Compute the average remaining service life and the annual amortization of prior service cost for Osvaldo.

2. Assuming that pension expense other than amortization of prior service cost was $460,000 for the year and $520,000 was contributed by the employer to the pension fund, prepare the formal summary journal entries relating to the pension plan for the current year.