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On January 1, year 8, Derek Company's defined benefit pension plan had plan assets with a falr value of $750,000, and a projected benefit obligation
On January 1, year 8, Derek Company's defined benefit pension plan had plan assets with a falr 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 Unamortzed prior service cost Is being amortized over the expected remaining service lives of covered employees, which consists of a total of 9 employees: + 2employees 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 Company's pension expense for year 8? Muttple Choice $7500 $13,333 $27,000 $0
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