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Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2012 are as follows.
Employee
Future Years of Service
Jim
3
Paul
4
Nancy
5
Dave
6
Kathy
On January 1, 2012, 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 2012 through 2017 using the years-of service method, setting up appropriate schedules.
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