Johnson, Inc. amended its defined benefit pension plan as of January 1, 2016. Johnson received a report from its actuary stating that at the beginning of 2016 unrecognized prior service cost resulting from the amendment amounted to

$144,000. The company's work force was composed of twelve people. Four were expected to retire at the end of 2018. Two were expected to retire at the end of 2020, two more at the end of 2022, and four at the end of 2024.

Required:

Using the years-of-future-service method, compute the amount of prior service cost to be amortized in the first year.

ANSWER: