On January 1, 2017, 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: 2017, 20; 2018, 15;2019, 12;2020, 8; and 2021, 5. Twenty employees benefit from this amendment. In 2018, the amortization amount would be:
A) $12,000.
B) $180,000.
C) $144,000.
D) $300,000.
Correct Answer:
Verified
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