(This problem should not be attempted until the previous one has been worked.) Refer to the prior-service cost data for Kayco Company presented in the preceding problem. Assume that prior-service cost is amortized over 10 years, that all expenses are funded as recognized, and that interest on the unfunded amount of prior-service cost accrues at the rate of 4 percent per year.

a What amount of unfunded obligation for prior-service cost would be disclosed in the footnotes to Kayco Company's financial statements issued for December 31, 1979 ?

b What amount of unfunded obligation for prior-service cost would be disclosed in the footnotes to Kayco Company's financial statements issued for December 31, 1980?