Response to the following problem:
At the beginning of the current year, Willow Company adopts a pension plan and awards retroactive benefits to its employees. The company's actuary computes these prior service costs to be $280,000. The company amortizes the prior service costs by the straight-line method over the remaining 14-year service life of its active employees.
Prepare the journal entries to record the prior service costs and the related year-end adjusting entry for the current year.