Answer:
They will expense <u>$843,956</u> in 2022
Explanation:
First we need to calculate the numbers of remaining employees each year
2019
Employees= 280
2020
Employees = 280 x ( 1 - 15% ) = 238
2021
Employees = 238 x ( 1 - 15% ) = 202
2022
Employees = 202 x ( 1 - 15% ) = 172
2023
Employees = 172 x ( 1 - 15% ) = 146
2024
Employees = 146 x ( 1 - 15% ) = 124
2025
Employees = 124 x ( 1 - 10% ) = 112
Now Calculate Total service life of employees as follow
Total service life of employees = Accumulated Numbers of employees from 2019 to 2022
Total service life of employees = 280 + 238 + 202 + 172 + 146 + 124 + 112 = 1,274
Now calculate average service life = Total service life of employees / Total employee = 1,274 / 280 = 4.55 years
Calculate the amount of amortisation
Amortization = Increase in project benefit obligation / Average service life = $3,840,000 / 4.55 years = $843,956 per year
