Pharoah Inc. has a defined-benefit pension plan covering its 248 employees. Pharoah agrees to amend its pension benefits. The prior service cost associated with the amendment is $180230. The employees are grouped according to expected years of retirement, as follows: Group A B C D Number of Employees 32 62 $66712 $41426 O $45058 $5632 102 52 Expected Retirement on December 31 2025 2026 2027 2028 Using the straight-line amortization over average remaining service life approach, what is the annual amount of Prior Service Cost amortization recognized in 2027?
Pharoah Inc. has a defined-benefit pension plan covering its 248 employees. Pharoah agrees to amend its pension benefits. The prior service cost associated with the amendment is $180230. The employees are grouped according to expected years of retirement, as follows: Group A B C D Number of Employees 32 62 $66712 $41426 O $45058 $5632 102 52 Expected Retirement on December 31 2025 2026 2027 2028 Using the straight-line amortization over average remaining service life approach, what is the annual amount of Prior Service Cost amortization recognized in 2027?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 13E
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Transcribed Image Text:Pharoah Inc. has a defined-benefit pension plan covering its 248 employees. Pharoah agrees to amend its pension
benefits. The prior service cost associated with the amendment is $180230. The employees are grouped according to
expected years of retirement, as follows:
Group
A
B
C
D
Number of
Employees
32
62
$66712
O $41426
O $45058
O $5632
102
52
Expected Retirement
on December 31
2025
2026
2027
2028
Using the straight-line amortization over average remaining service life approach, what is the annual amount of Prior
Service Cost amortization recognized in 2027?
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