In 2016, the Ballaster 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. Ballaster's actuary determined that the prior service cost for this amendment amounts to $550,000. One employee will retire in 1 year, 2 expect to retire in 2 years,1 in three years, 1 in 4 years, and 2 in five years.
Required:
Using the straight line method
1)compute the remaining service life round to 5 decimals)
2) prepare an amortization schedule to amortize the prior service cost

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The Answer of In 2016, the Ballaster 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. Ballaster's actuary determined that the prior service cost for this amendment amounts to $550,000. One employee will retire in 1 year, 2 expect to retire in 2 years,1 in three years, 1 in 4 years, and 2 in five years.
Required:
Using the straight line method
1)compute the remaining service life round to 5 decimals)
2) prepare an amortization schedule to amortize the prior service cost

In 2016, the Ballaster Company Decided to Amend Its Defined