Wolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2019, Wolz amended the pension plan; this amendment provides for increased benefits based on services rendered by certain employees in prior periods. Wolz's actuary has determined that the related prior service cost amounts to $161,000 . Wolz has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and their expected years of future service:

Employee Numbers	Expected Years of Future Service
1	2
2	3
3	4
4	5

Required:

Question Content Area

1 a. Using the straight-line method, compute the average remaining service life. If required, round your answer to one decimal place. ------- years

Question Content Area

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

WOLZ COMPANY Prior Service Cost Amortization 2019 - 2022

	Total Prior Service Cost	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	$fill in the blank	$fill in the blank	$fill in the blank
2020	fill in the blank	fill in the blank	fill in the blank
2021	fill in the blank	fill in the blank	fill in the blank
2022	fill in the blank	fill in the blank

Question Content Area

2 a. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization fraction for each year. Enter the amortization fraction as a fraction. For example: 3/10.

WOLZ COMPANY Years of Future Service Amortization Fractions

	Expected Years of Future Service	Number of Service Years Rendered in 2019	Number of Service Years Rendered in 2020	Number of Service Years Rendered in 2021	Number of Service Years Rendered in 2022	Number of Service Years Rendered in 2023
1	fill in the blank	fill in the blank	fill in the blank
2	fill in the blank	fill in the blank	fill in the blank	fill in the blank
3	fill in the blank	fill in the blank	fill in the blank	fill in the blank	fill in the blank
4	fill in the blank	fill in the blank	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total		fill in the blank	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Amortization fraction

Question Content Area

2 b. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization of the prior service cost. Enter all amounts as positive numbers.

WOLZ COMPANY Years of Future Service Prior Service Cost Amortization

	Total Prior Service Cost	Amortization Fraction	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	$- Select -		$- Select -	$- Select -
2020	- Select -		- Select -	- Select -
2021	- Select -		- Select -	- Select -
2022	- Select -		- Select -	- Select -
2023	- Select -		- Select -