North head Equipment offers its unionized employees a defined-benefit plan. The company determines that the beginning balance of its unamortized net actuarial gain is equal to $ 136,000. A recent report from the pension plan indicates that the beginning balances of the projected benefit obligation and the plan assets at fair value (the same as the market-related asset value) are equal to $ 1,150,000 and $ 1,278,000, respectively.
Required
a. Compute the current year’s amortization required by the corridor method assuming the average remaining service life of North head’s employees is 20 years.
b. Prepare the journal entry.