At the beginning of the current year, Willow Company adopts a pension plan and awards retroactive benefits

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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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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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