Hobbs Co. has the following defined benefit pension plan balances on January 1, 2012.

Projected benefit obligation	$4,600,000
Fair value of plan assets	4,600,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2013, the company amends its pension agreement so that prior service costs of $600,000 are created. Other data related to the pension plan are:

	2012	2013
Service cost	$150,000	$170,000
Prior service cost amortization