Testbank IFRS Multiple Choice Question 08 Sheridan Company follows GAAP for its external financial reporting whereas Pharoah Company follows IFRS for its external financial reporting. The remaining service lives of employees at both firms is estimated to be 10 years. The following information is available for each company at December 31, 2021 related to their respective defined- benefit pension plans. Net of pension assets and liabilities Prior service cost created Sheridan $116000 $240000 Pharoah $135000 $181000 What is the amount of prior service cost recognized by each company in its income statement for the year ended December 31, 2021? Sheridan Pharoah $24000 $18100 0 $24000 $181000 0 $240000 $18100 0 0 $240000 $181000