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Natali [406]
4 years ago
6

Buffalo Corporation amended its pension plan on January 1, 2017, and granted $166,400 of prior service costs to its employees. T

he employees are expected to provide 2,080 service years in the future, with 350 service years in 2017.Compute prior service cost amortization for 2017.
Business
2 answers:
krok68 [10]4 years ago
6 0

The prior service cost amortization for 2017 is $28,000

<u>Explanation:</u>

Given:

Amount granted = $166,400

Services per year = 2080

number of services in 2017 = 350

Prior service cost in 2017, PST = ?

Amount per service = $166,400 / 2080

                                 = $80

Amount in the year 2017, PST = $80 X 350

                                          PST = $28,000

Therefore, prior service cost amortization for 2017 is $28,000

atroni [7]4 years ago
6 0

Answer:

28,000

Explanation: brainliest?

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