Question: Stellar Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2017 are as follows.
|
Employee
|
|
Future Years of Service
|
| Jim |
|
3 |
| Paul |
|
4 |
| Nancy |
|
5 |
| Dave |
|
6 |
| Kathy |
|
6 |
On January 1, 2017, the company amended its pension plan, increasing its projected benefit obligation by $79,920.
Compute the amount of prior service cost amortization for the years 2017 through 2022 using the years-of-service method, setting up appropriate schedules.
|
Year
|
|
Annual Amortization
|
| 2017 |
|
$
|
| 2018 |
|
|
| 2019 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2022 |
|
|