Exercise 20-08
Ayayai Corp. has the following beginning-of-the-year present
values for its projected benefit obligation and market-related
values for its pension plan assets.
Projected |
Plan |
|||
---|---|---|---|---|
2019 |
$2,240,000 | $2,128,000 | ||
2020 |
2,688,000 | 2,800,000 | ||
2021 |
3,304,000 | 2,912,000 | ||
2022 |
4,032,000 | 3,360,000 |
The average remaining service life per employee in 2019 and 2020 is
10 years and in 2021 and 2022 is 12 years. The net gain or loss
that occurred during each year is as follows: 2019, $313,600 loss;
2020, $100,800 loss; 2021, $12,320 loss; and 2022, $28,000 gain.
(In working the solution, the gains and losses must be aggregated
to arrive at year-end balances.)
Using the corridor approach, compute the amount of net gain or loss
amortized and charged to pension expense in each of the four years,
setting up an appropriate schedule.
Year |
Minimum Amortization of Loss |
|
---|---|---|
2019 |
$enter a dollar amount | |
2020 |
$enter a dollar amount | |
2021 |
$enter a dollar amount | |
2022 |
$enter a dollar amount |
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