13.Beall, Inc. has a defined-benefit pension plan covering its 50 employees. Beall agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $2,700,000. Beall determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Beall uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is

a. $900,000.

b. $540,000.

c. $270,000.

d. $720,000.