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The following information relates to the pension plan for the employees of Wildhorse Co.: 1/1/17 12/31/17...

The following information relates to the pension plan for the employees of Wildhorse Co.: 1/1/17 12/31/17 12/31/18 Accum. benefit obligation $ 8940000 $ 9360000 $ 12300000 Projected benefit obligation 9465000 10158000 13707000 Fair value of plan assets 8625000 10620000 11754000 AOCI – net (gain) or loss -0- (1602000 ) (1650000 ) Settlement rate (for year) 9% 9% Expected rate of return (for year) 9% 8% Wildhorse estimates that the average remaining service life is 16 years. Wildhorse's contribution was $1293000 in 2018 and benefits paid were $957000. The amount of AOCI (net gain) amortized in 2018 is $33750. $23023. $26023. $43388.

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Answer #1
Answer:
Corridor for 2018
       = 10% of Plan asset at the begining of 2018 / End of 2017
       = 10 % x $ 10,620,000
      =   $ 1,062,000
The amount of AOCI (net gain) amortized in 2018
       = Beginning AOCI – net (gain) or loss (-) Amount of Corridor ) / Service life
       = ( $ 1,602,000   (-)   $ 1,062,000 ) / 16 Years
       =   $ 540,000 / 16 years
       =    $ 33,750
The amount of AOCI (net gain) amortized in 2018 =    $ 33,750
Option (a) is Correct
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