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On January 1, 2010, a Company Had $84, 000 of Unrecognized

Question 23

Multiple Choice

On January 1, 2010, a company had $84, 000 of unrecognized prior service cost.The years-of-future-service method of amortization is used.The company has seven employees, as indicated below: Expected Years ofEmployeeFuture ServiceA3 B5C5D6E6 F8G9\begin{array}{ll}&\text {Expected Years of}\\\text {Employee}&\text {Future Service}\\\mathrm{A} & 3 \\\mathrm{~B} & 5 \\\mathrm{C} & 5 \\\mathrm{D} & 6 \\\mathrm{E} & 6 \\\mathrm{~F} & 8 \\\mathrm{G} & 9\end{array}
What amount of prior service cost should be included in pension expense for 2010?


A) $ 2, 000
B) $ 9, 333
C) $12, 000
D) $14, 000

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