Straight-Line Amortization

At the beginning of 2016, Brent Company amended its defined benefit pension plan. The amendment entitled five active participating employees to receive increased future benefits based on their prior service. Brent's actuary determined that the prior service cost for this amendment amounts to $330,000. Employee A is expected to retire after 1 year, employee B after 2, employee C after 3, employee D after 4, and employee E after 5 years.

Required:

1. Using the straight-line method, compute the average remaining service life. years

2. Using the straight-line method, prepare a schedule to amortize the prior service cost. Enter all amounts as positive numbers.

BRENT COMPANY
Prior Service Cost Amoritzation
2016 - 2018
		Total Prior Service CostAmortizationRemaining Prior Service Cost2016$$$20172018