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The employees are grouped according to expected years of

Amortization of Unrecognized Prior Service Cost

The pension plan covers 200 employees and prior service cost is $98,000.

The employees are grouped according to expected years of retirement, as shown below. Compute the annual prior service cost amortization.

Group Number of Employees Retirement on Dec. 31

A 20 2014

B 30 2015

C 40 2016

D 60 2017

E 40 2018

F 10 2019

200

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