Please don't give image format 1Methods to Amortize Prior Service CostWolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2019, Wolz amended the pension plan; thisamendment provides for increased benefits based on services rendered by certain employees in prior periods. Wolz's actuary has determined that the related prior service costamounts to $140,000. Wolz has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and theirexpected years of future service:EmployeeNumbers12342019202020212022Expected Years ofFuture Service23Show Transcribed TextTotalPrior ServiceCost451 a. Using the straight-line method, compute the average remaining service life. If required, round your answer to one decimal place.years1 b. Using the straight-line method, prepare a schedule to amortize the prior service cost. Enter all amounts as positive numbers.WOLZ COMPANYPrior Service Cost Amortization2019-2022AmortizationFractionRemainingPrior ServiceCost 2 a. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization fraction for each year. Enter the amortization fraction as a fraction.For example: 3/10.1234TotalAmortization fractionShow Transcribed TextExpectedYears ofFuture Service20192020202120222023TotalPrior ServiceCostNumber ofService YearsRendered in 2019AmortizationFractionWOLZ COMPANYYears of Future ServiceAmortization FractionsNumber ofService YearsRendered in 20202 b. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization of the prior service cost. Enter all amounts as positive numbers.WOLZ COMPANYYears of Future ServicePrior Service Cost Amortization3AmortizationRemainingto Increase Prior ServicePension Expense CostNumber ofService YearsRendered in 2021Number ofService YearsNumber ofService YearsRendered in 2022 Rendered in 2023

In accounting, amortization expenditure refers to the gradual distribution of an intangible asset's…

Methods to Amortize Prior Service Cost Wolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2019, Wolz amended the pension plan; this amendment provides for increased benefits based on services rendered by certain employees in prior periods. Wolz's actuary has determined that the related prior service cost amounts to $140,000. Wolz has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and their expected years of future service: Employee Numbers 1 2 3 Expected Years of Future Service 2 3 4 in