Lampoon Vacations has decided to amend its pension plan in 2019 to retroactively expand the benefits offered to employees who worked for the company prior to 2019. The prior service cost associated with this plan amendment is $125,000. How should Lampoon account for these prior service costs?

Treat them as a prior period adjustment because no future periods are benefited.

Amortize them into pension expense over time.

Record them as a loss.

Record a deferred tax liability in accordance with the internal revenue code.