Methods to Amortize Prior Service Cost

Wolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2019, Wolz amended the pension plan; this amendment provides for increased benefits based on services rendered by certain employees in prior periods. Wolz's actuary has determined that the related prior service cost amounts to $77,000 . Wolz has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and their expected years of future service:

Employee Numbers	Expected Years of Future Service
1	2
2	3
3	4
4	5

Required:

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1 a. Using the straight-line method, compute the average remaining service life. If required, round your answer to one decimal place. fill in the blank 9ba0c3f93f97f84_1 years

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1 b. Using the straight-line method, prepare a schedule to amortize the prior service cost. Enter all amounts as positive numbers.

	Total Prior Service Cost	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	$fill in the blank e7e27a05404d054_1	$fill in the blank e7e27a05404d054_2	$fill in the blank e7e27a05404d054_3
2020	fill in the blank e7e27a05404d054_4	fill in the blank e7e27a05404d054_5	fill in the blank e7e27a05404d054_6
2021	fill in the blank e7e27a05404d054_7	fill in the blank e7e27a05404d054_8	fill in the blank e7e27a05404d054_9
2022	fill in the blank e7e27a05404d054_10	fill in the blank e7e27a05404d054_11

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2 a. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization fraction for each year. Enter the amortization fraction as a fraction. For example: 3/10.

	Expected Years of Future Service	Number of Service Years Rendered in 2019	Number of Service Years Rendered in 2020	Number of Service Years Rendered in 2021	Number of Service Years Rendered in 2022	Number of Service Years Rendered in 2023
1	fill in the blank 1e163a05d049006_1	fill in the blank 1e163a05d049006_2	fill in the blank 1e163a05d049006_3
2	fill in the blank 1e163a05d049006_4	fill in the blank 1e163a05d049006_5	fill in the blank 1e163a05d049006_6	fill in the blank 1e163a05d049006_7
3	fill in the blank 1e163a05d049006_8	fill in the blank 1e163a05d049006_9	fill in the blank 1e163a05d049006_10	fill in the blank 1e163a05d049006_11	fill in the blank 1e163a05d049006_12
4	fill in the blank 1e163a05d049006_13	fill in the blank 1e163a05d049006_14	fill in the blank 1e163a05d049006_15	fill in the blank 1e163a05d049006_16	fill in the blank 1e163a05d049006_17	fill in the blank 1e163a05d049006_18
Total		fill in the blank 1e163a05d049006_19	fill in the blank 1e163a05d049006_20	fill in the blank 1e163a05d049006_21	fill in the blank 1e163a05d049006_22	fill in the blank 1e163a05d049006_23
Amortization fraction		1/142/143/144/145/14	1/142/143/144/145/14	1/142/143/144/145/14	1/142/143/144/145/14	1/142/143/144/145/14

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2 b. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization of the prior service cost. Enter all amounts as positive numbers.

	Total Prior Service Cost	Amortization Fraction	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	$- Select -	1/142/143/144/145/14	$- Select -	$- Select -
2020	- Select -	1/142/143/144/145/14	- Select -	- Select -
2021	- Select -	1/142/143/144/145/14	- Select -	- Select -
2022	- Select -	1/142/143/144/145/14	- Select -	- Select -
2023	- Select -	1/142/143/144/145/14	- Select -