Question
On January 1, 2007, Quayle Incorporated amended its pension plan which caused an increase of $6,000,000 in its projected benefit obligation. The company has 400
On January 1, 2007, Quayle Incorporated amended its pension plan which caused an increase of $6,000,000 in its projected benefit obligation. The company has 400 employees who are expected to receive benefits under the company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements: Expected Retirements Number of Employees On December 31 40 2007 120 2008 60 2009 160 2010 20 2011 400 The company plans to use the years-of-service method in calculating the amortization of unrecognized prior service cost as a component of pension expense. What is the amount of annual prior service cost amortization for the year 2008?
a. 2,220,000
b. 2,000,000
c. 1,860,000
d. 1,800,000
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