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Assume that on January 1 the defined benefit plan of Lewis, Inc. has a beginning balance in PBO and Plan Assets of $700,000 and $650,000,

Assume that on January 1 the defined benefit plan of Lewis, Inc. has a beginning balance in PBO and Plan Assets of $700,000 and $650,000, respectively. On this date, Lewis also has a $120,000 gain in its Accumulated OCI gain/loss account. Assuming no other transactions during the year affect the account and that Lewis has an average remaining service period of 10 years, how much of the gain would be amortized for the current year? Hint: use the corridor amortization approach and recall that the corridor percentage is always 10%.

Group of answer choices $5,000 $50,000 $0 $120,000

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