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Question: (Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2014 are as follows.
Employee Future Years of Service
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
On January 1, 2014, the company amended its pension plan, increasing its projected benefit obligation by $72,000.
Instructions: Compute the amount of prior service cost amortization for the years 2014 through 2019 using the years-of service method, setting up appropriate schedules.
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