Choice "A" is correct. Pension expense includes the effect of changes in the employer's net pension liability (except for deferred outflows/inflows of resources). The government should recognize the effect of a change in benefits in pension expense immediately to the extent that a change is attributable to prior service and amortize the balance over the remaining service life of the affected individuals.Choice "b" is incorrect. Pension expense includes the effect of changes in the employer's net pension liability (except for deferred outflows/inflows of resources). The government should recognize the effect of a change in benefits in pension expense immediately to the extent that a change is attributable to prior service and amortize the balance over the remaining service life of the affected individuals. The proposed solution recognizes the entire amount of the change as expense without consideration of deferred amounts.Choice "d" is incorrect. Pension expense includes the effect of changes in the employer's net pension liability (except for deferred outflows/inflows of resources). The government should recognize the effect of a change in benefits in pension expense immediately to the extent that a change is attributable to prior service and amortize the balance over the remaining service life of the affected individuals. The $150,000 component of the change in the liability that has already been earned by the employees would be expensed, not deferred.Choice "c" is incorrect. The amount of the change in the liability ($50,000) that is not associated with prior service is displayed as a deferred outflow, not a deferred inflow of resources.