Lansing Corporation has a funded, non contributory, defined benefit pension plan. The company complies with generally accepted accounting principles (GAAP).

 As of 12-31 -2021, Lansing had prior service cost of $600,000. 

On 1-1-2022, the company incurred prior service cost of $100,000, resulting in a $100,000 change in the PBO. 

Lansing contributed $100,000 to the pension fund on 1-1-2022, i.e., Lansing funded $100,000. 

Amortization of prior service cost was $70,000 for 2022. Service cost was $80,000 for 2021. 

The accounting for non contributory, funded, defined benefit pension plans under generally accepted accounting principles (GAAP) allows a lot of deferral devices (i.e., an item is NOT recognized immediately in pension expense) and a lot of smoothing devices (i.e., an item is only recognized gradually over time in pension expense) and Lansing uses those devices. 

REQUIRED 

What is prior service cost as of 12-31-2022 ?

Answer rating: 100% (QA)

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