(Amortization of Accumulated OCI (G/L), Corridor Approach, Pension Expense Computation)

The actuary for the pension plan of Joyce Bush Inc. calculated the following net gains and losses.

Incurred during the Year (Gain) or Loss

2010 $300,000

2011 480,000

2012 (210,000)

2013 (290,000)

Other information about the companys pension obligation and plan assets is as follows.

Projected Benefit Plan Assets

As of January 1, Obligation (market-related asset value)

2010 $4,000,000 $2,400,000

2011 4,520,000 2,200,000

2012 4,980,000 2,600,000

2013 4,250,000 3,040,000

Joyce Bush 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, 2010. 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.

Instructions

(Round to the nearest dollar)

Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component

of net periodic pension expense for each of the years 2010, 2011, 2012, and 2013. Apply the corridor

approach in determining the amount to be amortized each year.