Bulls Corporation amends its pension plan on 1/1/06. The following information is available:

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1/1/06 amendment

1/1/06 after amendment

Accumulated benefit obligation

$ 950,000

$1,425,000

Projected benefit obligation

1,300,000

1,900,000

The total amount of unrecognized prior service cost to be amortized over future periods as a result of this amendment is

  1. $950,000
  2. $600,000
  3. $475,000
  4. $125,000