ABC, Inc grants years of service to a group of longer serving employees when they change their pension plan. Those benefits have an actuarial PV of $50,000. If the remaining service years for the 5 affected employees is 20, and none retire this year, how much amortization of prior service cost (PSC) will they include in pension expense this year?

Question 2 options:

a)

$ 2,500

b)

$10,000

c)

.$12,500

Presented below is information related to ABCs pension data for 20x1.

Service cost $120,000

Actual return on plan assets 70,000

Interest on projected benefit obligation 110,000

Amortization of unrecognized net loss 30,000

Amortization of unrecognized prior service cost 55,000

Expected return on plan assets 60,000

What amount should be reported for pension expense in 20x1?

Question 3 options:

a)

$145,000

b)

$245,000

c)

$255,000