P20 - 6B ( Computation of Prior Service Cost Amortization , Pension Expense , Journal Entries , and NeGain or Loss ) Oranges Inc has sponsored a noncontributory , defined benefit pension plan for its employeessince 1960 . . Prior to 2014 cumulative net pension expense recognized equaled cumulative contributions tothe plan . Other relevant information about the pension plan on January 1 2014 , is as follows1 . The company has 75 employees . All these employees are expected to receive benefits under the plan .The average remaining service life per employee is 10 years2 . The projected benefit obligation amounted to $3 , 100, 100 and the fair value of pension plan assets wasan s$2 200 000 . The market - related asset value was also $2 200 , 100 . Unrecognized prior service cost wa$ 800 090On December 31 , 2014 , the projected benefit obligation and the accumulmulated benefit obligation were$3900,100 and $3 350 , 100 , respectively . The fair value of the pension plan assets amounted to $2 800,090 a