Shutters Company Adopted a Defined Benefit Pension Plan on January

Shutters Company adopted a defined benefit pension plan on January 1,2014.Shutters amortizes the prior service cost over 16 years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years.The service cost is fully funded at the end of each year.The following data are available for 2014:

If interest cost for 2014 is equal to the return on plan assets,then Shutters's prepaid pension cost at December 31,2014,is

A) $228,800.
B) $166,800.
C) $62,000.
D) $0

Correct Answer:

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