Information ABC Corp, has been in business since 2004. It currently offers a pension plan that provides a pension to its employees equal to 2% of the employees ending salary for every year worked. Currently, the company has 8 employees all of which started with the company at it inception in January of 2004. As of 1-1-2015 the balance in OCI-Prior Service Cost was 60,000.
The Following is an employee list of ABC employee's showing their age, and expected retirement date as of 12-31-15.
Employee DOB Exp Retirement Date
Tom 2/1/59 12/31/2024
Bill 3/1/50 12/31/2016
Andy 5/1/49 12/31/2016
Mary 2/15/75 12/31/2036
Daisy 7/15/65 12/31/2029
Ron 8/1/63 12/31/2027
Tony 11/12/72 12/31/2050
Linda 12/1/85 12/31/2050
Required
1. Prepare a table Calculating the amortization rates use to amortize the Prior Service Cost under the Years of Service Method for 2015 and 2016
2. Calculate the amortization rate for 2015 using the Average Service Life method