Rodeo Corporation amended its defined benefit pension plan on January 31, 2013, to increase retirement benefits earned with each service year. The actuary estimated the prior service cost to be $216,000. Rodeo's 80 present employees are expected to retire at the rate of about 10 each year at the end of each of the next eight years beginning on December 31, 2013.
Required:
Using the service method, calculate the amount of prior service cost to be amortized to pension expense in each of the next eight years.

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The Answer of Rodeo Corporation amended its defined benefit pension plan on January 31, 2013, to increase retirement benefits earned with each service year. The actuary estimated the prior service cost to be $216,000. Rodeo's 80 present employees are expected to retire at the rate of about 10 each year at the end of each of the next eight years beginning on December 31, 2013.
Required:
Using the service method, calculate the amount of prior service cost to be amortized to pension expense in each of the next eight years.

Rodeo Corporation Amended Its Defined Benefit Pension Plan on January