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For a defined benefit pension plan prior service costs should be Charged direct against retained earnings as a cost relating to the past Amortized to

For a defined benefit pension plan "prior service costs" should be

Charged direct against retained earnings as a cost relating to the past

Amortized to pension expense over the expected average service period of past and current employees expected to receive benefits

Taken into consideration only by adding to pension expense the interest on the unfunded amount

Recorded in full as a liability at their discounted present value

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