91. Azalea Inc. has a defined-benefit pension plan covering its 250 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Using the years of service approach, what is the annual amount of Prior Service Cost amortization recognized in 2027 (round to nearest dollar)? a. $28,364 b. $120,000 c. $6,000 d. 43,633 Ans: A, LO: 3, Blocm: AP, Difficulty: Moderate, Min: 4, AACSB: Reflective, AICPA BC: None, AlCPA AC: Measurement Analysis and Interpretation ACCPA PC: Problem Sohing, IMA: Reporting, IFRS: None 91. Azalea Inc. has a defined-benefit pension plan covering its 250 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Using the years of service approach, what is the annual amount of Prior Service Cost amortization recognized in 2027 (round to nearest dollar)? a. $28,364 b. $120,000 c. $6,000 d. 43,633 Ans: A, LO: 3, Blocm: AP, Difficulty: Moderate, Min: 4, AACSB: Reflective, AICPA BC: None, AlCPA AC: Measurement Analysis and Interpretation ACCPA PC: Problem Sohing, IMA: Reporting, IFRS: None