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Compute the annual prior service cost amortization

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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

Reference no: EM131633586

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