QUESTION 7 A company has a defined-benefit pension plan covering its 50 employees. The company agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $5,700,000. The company determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that the company uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is 570,000 1,900,000 1,140,000 1,520,000 O 900,000 QUESTION 8 Employees are at risk with defined-benefit pension plans because they must contribute enough to meet the cost of benefits the plan defines. True False