In 2016, the Berry Company decided to amend its defined benefit pension plan. The amendment gave 7 employees the right to receive future benefits based upon their prior service. Electrician's actuary determined that the prior service cost for this amendment amounts to $550,000. Employee A will retire in 1 year, employees B & C expect to retire in 2 years, employee D in three years, employee E in 4 years, and employees F & G in five years.

Required:

Using the years-of-future service method, prepare the schedules to determine:

1. the amortization fraction for each year

2. the amortization of the prior service cost

ANSWER: