On January 1, 2018, Derek Co.s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected benefit obligation of $875,000. In addition:

Actual and expected return on plan assets 7%

Interest cost 9%

Service costs - $24,000

Unamortized prior service cost - $120,000

Employer contributions to the plan - $45,000

Distributions to employees from the plan - $60,000

Unamortized prior service cost is being amortized over the expected remaining service lives of covered employees, which consists of a total of 9 employees:

2 employees are each expected to have 9 years remaining

3 employees are each expected to have 6 years remaining

4 employees are each expected to have 1 year remaining

How much amortization of prior service cost will be included in Derek Co.s pension expense for 2018?

Multiple Choice

$13,333

$27,000

$7,500

$0