Spears Company presents the following information related to its pension plan for 2020, before recording pension expense.
Question:
Spears Company presents the following information related to its pension plan for 2020, before recording pension expense.
Required
a. Determine the amortization of Accumulated OCI-Pension Gain/Loss for 2020, using (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period.
b. Determine the Accumulated OCI—Pension Gain/Loss balance at January 1, 2021, assuming straight-line amortization.
c. Determine the impact on pension expense in 2020 based upon the information provided, assuming straightline amortization of accumulated pension gain/loss. What information is missing in order to calculate total pension expense?
d. Determine the amortization of Accumulated OCI—Pension Gain/Loss for 2021, assuming straight-line amortization.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781618533135
2nd Edition
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo