Past service cost is amortized on a

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According to the generally accepted accounting principles (GAAP), past service cost should be amortized on the years-of-service method or on a straight-line basis over the average remaining service life of active employees. This method ensures that the cost is allocated to the periods in which the employees are providing service and earning benefits. Option B provides this method as a choice, and is therefore the best option. Option D is also partially correct, but it additionally includes a fixed 10-year period which may not align with the actual average remaining service life of the employees.

Past Service Cost Is Amortized on a