When the Service Method Is Used for Amortizing Prior Service

When the service method is used for amortizing prior service costs, the amount recognized each year is:

A) In proportion to the fraction of the total remaining service years worked during the year.
B) A constant amount or fixed amount.
C) Prior service cost divided by the average remaining service life of the active employee group.
D) Prior service cost divided by the average estimated retirement age of the currently enrolled employee group.

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