At the beginning of the current year, Willow Company adopts a pension plan and awards retroactive benefits to its employees. The company's actuary computes these prior service costs to be $280,000. The company amortizes the prior service costs by the straight-line method over the remaining 14-year service life of its active employees. Prepare the journal entries to record the prior service costs and the related year-end adjusting entry for the current year.
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