Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cheyenne Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation Plan

Cheyenne Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.

Projected Benefit Obligation

Plan Assets Value

2019

$2,300,000 $2,185,000

2020

2,760,000 2,875,000

2021

3,392,500 2,990,000

2022

4,140,000 3,450,000

The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $322,000 loss; 2020, $103,500 loss; 2021, $12,650 loss; and 2022, $28,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.

Year

Minimum Amortization of Loss

2019

$enter a dollar amount

2020

$enter a dollar amount

2021

$enter a dollar amount

2022

$enter a dollar amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Effectiveness Meeting The IT Challenge

Authors: Kamil Omoteso

1st Edition

1409434680, 978-1409434689

More Books

Students also viewed these Accounting questions

Question

1. Differentiate between national identity and cultural identity

Answered: 1 week ago

Question

Explain the forces that influence how people handle conflict

Answered: 1 week ago