In its 10-Q for the second quarter of 2017, United Parcel Service, Inc. (also known as UPS) disclosed the following information about its employee benefits plan:

Plan Amendments and Curtailments

In the quarter ended June 30, 2017, we amended the UPS Retirement Plan to cease accruals of additional benefits for future service and compensation for non-union participants. We remeasured plan assets and pension benefit obligations for the affected pension plans, resulting in a net actuarial gain of $569 million. This [net actuarial gain] reflects a reduction of approximately 0.32 percent in the discount rate [on the pension obligation]. The actuarial gain reduced the actuarial loss recorded in "accumulated other comprehensive loss" in the equity section of the consolidated balance sheet. As actuarial losses are within the corridor, there is no impact to the statement of consolidated income for the quarter ended June 30, 2017.

Because UPS ceased accruals of additional pension benefits for future service as of June 30, 2017, after June 30, 2017 UPS did not record (in other words, recorded zero for) which of the following?

Amortization of prior service cost

Expected return on assets

Interest cost

Service cost

Answer rating: 100% (QA)

ANSWER A mortization of prior service cost Amortization of prior service costs should begin immediat... View the full answer