Question: Pannell Resources has a defined benefit pension plan for its 280 employees. In 2016 they decided to modify the pension plan, resulting in an increase

Pannell Resources has a defined benefit pension plan for its 280 employees. In 2016 they decided to modify the pension plan, resulting in an increase of $3,840,000 to the projected benefit obligation. Pannell believes that 15% of its employees will leave the company in each of the next six years and 10% in the seventh year.

If Pannell uses straight-line amortization to account for past service costs, how much will they spend in 2019?

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