In: Accounting
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below.
Group |
Number of Employees |
Expected Retirement on December 31, |
I |
30 |
2014 |
II |
50 |
2015 |
III |
60 |
2016 |
IV |
40 |
2017 |
Total |
180 |
1. Compute per year service years and the total service years.
2. Compute annual prior service cost amortization.
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