Question
Blossom Company has 100 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees
Blossom Company has 100 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,000. The actuary for the company's pension plan calculated the following net gains and losses:
For the Year Ended December 31 | (Gain) Or Loss | ||
2020 | $540,000 | ||
2021 | (454,000) | ||
2022 | 890,000 |
Prior to 2020, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows:
As of January 1 | ||||||
2020 | 2021 | 2022 | ||||
Projected benefit obligation | $2,000,000 | $2,240,000 | $2,840,000 | |||
Fair value of plan assets | 1,580,000 | 2,360,000 | 2,450,000 |
Based on the above information about Blossom Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2020, 2021, and 2022. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees.
Beginning of Year | ||||||||||
Projected Benefit Obligation | Plan Assets | Corridor | Accumulated OCI (Gain/Loss) | Amortization | ||||||
2020 | $ | $ | $ | $ | $ | |||||
2021 | ||||||||||
2022 |
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