On January 1, 2008, WOW Amended Its Defined Benefit Pension

On January 1, 2008, WOW amended its defined benefit pension plan. The amount of prior service costs caused by this action was $720,000. WOW uses the service method for amortizing prior service costs. The following service years were provided by the company actuary: 2008, 20; 2009, 15; 2010, 12; 2011, 8; and 2012, 5. Twenty employees benefit from this amendment. In 2009, the amortization amount would be:

A) $12,000.
B) $180,000.
C) $144,000.
D) $300,000.Total service years = 20 + 15 + 12 + 8 + 5 = 60 Amortization in 2009 = 15/60 $720,000 = $180,000