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the amortization fraction for each year   the amortization of the prior service co

the amortization fraction for each year   the amortization of the prior service co

Intermediate Accounting: Reporting And Analysis
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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In 2016, the Berry Company decided to amend its defined benefit pension plan. The amendment gave 7 employees the right to receive future benefits based upon their prior service. Electrician's actuary determined that the prior service cost for this amendment amounts to $550,000. Employee A will retire in 1 year, employee’s B & C expect to retire in 2 years, employee D in three years, employee E in 4 years, and employee’s F & G in five years.

Required:

Using the years-of-future service method, prepare the schedules to determine:

  1. the amortization fraction for each year

 

  1. the amortization of the prior service cost
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