Determine the amount of prior service costs to be amortized


Rodeo corporation amended its defined benefit pension plan on January 31, 2011, ti increase retirement benefits earned with each service year. The actuary estimated the prior service cost to be $300,000. Rodeo's 60 present employees are expected to retire at the rate of about 15 each year at the end of each of the next 4 years beginning on December 31, 2011. Using the straight-line method determine the amount of prior service costs to be amortized to pension expense in each of the next four years

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Accounting Basics: Determine the amount of prior service costs to be amortized
Reference No:- TGS0714450

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