Midland Company follows U.S. GAAP for its external financial reporting whereas Bailey

Company follows IFRS for its external financial reporting. The remaining service lives of employees at both firms is estimated to be 10 years. The following information is available for each company at December 31, 2013 related to their respective defined benefit pension plans:

Midland Bailey

Net of pension assets and (liabilities) 110,000 130,000

Prior service cost (after amortization, if any) 220,000 175,000

What is the amount of Prior Service Cost recognized by each company on its balance sheet in AOCI at December 31, 2013?

Midland Bailey

A. 220,000 175,000

B. 0 175,000

C. 0 0

D. 220,000 0