On January 1, 2014, King WIngs Company has the following defined benefit pension plan balances. Projected benefi t obligation $2,800,000 Fair value of plan assets 2,400,000 The interest (settlement) rate applicable to the plan is 8%. On January 1, 2015, the company amends its pension agreement so that prior service costs of $300,000 are created. Other data related to the pension plan are as follows. 2014 2015 Service cost $200,000 $225,000 Prior service cost amortization