In 2016, the Ballaster Company decided to amend its defined benefit pension plan. The amendment gave 7 employees the right to recieve future benefits based upon their prior service. Ballaster's actuary determined that the prior service cost for the amendment amounts to $550,000. One employee will retire in 1 year, 2 expect to retire in 2 years, 1 in three years, 1 in 4 years, and 2 in five years.

Required:

Using the straight line method

1) Compute the remaining service life (round to 5 decimals)

2) Prepare an amortization schedule to amortize the prior service cost