A is corrent. The requirement is to calculate the amount of unrecognized prior service cost amortization for the year. The amortization per service year is calculated as $300 ($600,000 prior service cost ÷ 2,000 service years). This answer is correct because there are 350 service years in the current year, and 350 × $300 = $105,000 of amortization.
B is incorrect. The requirement is to calculate the amount of unrecognized prior service cost amortization for the year. The amortization per service year is calculated as $300 ($600,000 prior service cost ÷ 2,000 service years). B is incorrect because there are 350 service years in the current year, and 350 × $300 = $105,000 of amortization.
B is incorrect. The requirement is to calculate the amount of unrecognized prior service cost amortization for the year. The amortization per service year is calculated as $300 ($600,000 prior service cost ÷ 2,000 service years). B is incorrect because there are 350 service years in the current year, and 350 × $300 = $105,000 of amortization.
D is incorrect. The requirement is to calculate the amount of unrecognized prior service cost amortization for the year. The amortization per service year is calculated as $300 ($600,000 prior service cost ÷ 2,000 service years). D is incorrect because there are 350 service years in the current year, and 350 × $300 = $105,000 of amortization.
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