7P20-6 (Computation of Prior Service Cost Amortization, Pension Expense, Journal Entries, and Net

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Gain or Loss) Aykroyd Inc. has sponsored a noncontributory, defined benefit pension plan for its employ- ees since 1991. Prior to 2014, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2014, is as follows.

1. The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years.

2. The projected benefit obligation amounted to $5,000,000 and the fair value of pension plan assets was $3,0