Ajay Co. uses the years-of-future-service-method to amortize the prior service cost in its employee pension plan over a four-year period beginning in...

18.  Ajay Co. uses the years-of-future-service-method to amortize the prior service cost in its employee pension plan over a four-year period beginning in 2012 and ending in 2015. Ajay has determined the expected years of service for its employees as follows: 

(a) Raju and Anik: 4 years 

(b) Carol, Sarah, and Eric: 3 years 

(c) Marlon: 2 years. 

The total prior service cost of the pension plan is $375,000. What is the balance in prior service cost after computing the 2014 amortization? (Round to the nearest dollar amount.) 

      A. $93,750

  B. $39,474

  C. $214,286

  D. $98,684