Compute the amount of prior service cost amortization

Reference no: EM131761909

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

Reference no: EM131761909

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