Cost On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,200,000 on that date (which it did not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January' 1, 2016:

Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Baznik€™s pension expense, in addition to the amortization of the prior service cost for 2016 and 2017:

Baznik contributed $850,000 and $830,000 to the pension fund at the end of 2016 and 2017, respectively.
Required:
1. Prepare a set of schedules for Baznik to determine
(a) The amortization fraction for each year
(b) The amortization of the prior service cost.
2. Prepare all the journal entries related to Baznik€™s pension plan for 2016 and 2017.

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Expected Years of Future Service Employee 4. 2016 2017 Service cost Interest cost on projected benefit obligation Expected refurn on plan assels $469,000 108,000 $507,000 159,930 85,000