Question: Bathworks Corp. has a defined benefit pension plan covering its 75 employees. Bathworks agrees to amend its pension benefits as of January 1, 2020. As

Bathworks Corp. has a defined benefit pension plan covering its 75 employees. Bathworks agrees to amend its pension benefits as of January 1, 2020. As a result, the projected benefit obligation increased by $2,475,000. Bathworks projects that 20% of its current employees will turnover each of the next five years (i.e., Bathworks expects to have all 75 of its current employees for 2020, but only 60 remaining for 2021, 45 for 2022, 30 for 2023, and 15 for 2024). Assuming that Bathworks uses the years-of-service method of amortization for prior service cost, the amount of amortization of prior service cost for 2020 is

A. $33,000 B. $495,000 C. $600,000 D. $825,000

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