The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses
Incurred during the Year |
(Gain) or Loss |
||
---|---|---|---|
2020 |
$300,000 | ||
2021 |
480,000 | ||
2022 |
(210,000) | ||
2023 |
(290,000) |
Other information about the company’s pension obligation and plan
assets is as follows.
As of January 1, |
Projected Benefit |
Plan Assets |
||
---|---|---|---|---|
2020 |
$4,000,000 | $2,400,000 | ||
2021 |
4,520,000 | 2,200,000 | ||
2022 |
5,000,000 | 2,600,000 | ||
2023 |
4,240,000 | 3,040,000 |
Gustafson Inc. has a stable labor force of 400 employees who are
expected to receive benefits under the plan. The total
service-years for all participating employees is 5,600. The
beginning balance of accumulated OCI (G/L) is zero on January 1,
2020. The market-related value and the fair value of plan assets
are the same for the 4-year period. Use the average remaining
service life per employee as the basis for amortization.
Compute the minimum amount of accumulated OCI (G/L) amortized as a
component of net periodic pension expense for each of the years
2020, 2021, 2022, and 2023. Apply the “corridor” approach in
determining the amount to be amortized each year.
Year |
Minimum Amortization of (Gain) Loss |
|
---|---|---|
2020 |
||
2021 |
||
2022 |
||
2023 |
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