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Willshire Ltd

question 60

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Willshire Ltd.is evaluating amendments to its pensions plans.Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers.On January 1, 2016, Willshire will grant employees in Plan 2 additional pension benefits of £240,000 based on their past service.Employees in this plan have an average period to vesting of 8 years.Plan 1 will be amended to reduce benefits by £120,000 (in exchange, employees will receive increased contributions to the company's defined contribution plan) .Employees in this plan have an average period to vesting of 6 years.What is the total past service cost included in pension expense 2016?


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