The McCollum Company amended its noncontributory defined benefit pension plan at the beginning of 2004. The unrecognized prior service cost related to this amendment amounts to $240,000. Information regarding the four participating employees is as follows:
|
Employee |
Expected to Retire After |
|
A |
Year 1 |
|
B |
Year 2 |
|
C |
Year 4 |
|
D |
Year 5 |
Using the straight line method, what is the amount of unrecognized prior service cost to be amortized in 2007?
a. $0
b. $40,000
c. $60,000
d. $80,000