Computing Amortization of Pension Gain/Loss On January 1, 2020, K. Crew Inc. reported a $6,000 credit balance in its Accumulated OCIPension Gain/Loss account related to its pension plan. During 2020, the following events occurred. Actual return on plan assets was $8,000, and expected return was $10,000. A gain on the PBO of $4,000 was determined by the actuary at December 31, 2020, based on changes in actuarial assumptions. K. Crew amortizes unrecognized gains and losses using the corridor approach over the average remaining service life of active employees (20 years for 2020 and 2021). Further information on this plan follows. Jan. 1, 2020 PBO $50,000 Dec. 31, 2020 PBO $56,000 Fair value of plan assets Jan. 1 30,000 Fair Value of plan assets Dec. 31 34,000

Required:

- Compute amortization of Accumulated OCIPension Gain/Loss for 2020 using the corridor approach.

- Compute the balance in Accumulated OCIPension Gain/Loss on December 31, 2020. Note: Use a negative sign to indicate an accumulated loss.

- Compute amortization of Accumulated OCIPension Gain/Loss for 2021 using the corridor approach. Note: Round your answer to the nearest whole dollar.

- Instead, now assume that K. Crew elects to amortize Accumulated OCIPension Gain/Loss using the straight-line method. Compute amortization of Accu-mulated OCIPension Gain/Loss for 2020 and 2021. Amortization under the straight-line method, 2020

-Amortization under the straight-line method, 2021

Question 4 incorrect Mark 0.00 out of 5.00 P Flag question Computing Amortization of Pension Gain/Loss On January 1, 2020, K. Crew Inc. reported a $6,000 credit balance in its Accumulated OC --Pension Gain/Loss account related to its pension plan. During 2020, the following events occurred. Actual return on plan assets was $8,000, and expected return was $10,000.0 Again on the PBO of $4,000 was determined by the actuary at December 31, 2020, based on changes in actuarial assumptions. K. Crew amortizes unrecognized gains and losses using the corridor approach over the average remaining service life of active employees (20 years for 2020 and 2021). Further information on this plan follows. Jan. 1, 2020 Dec. 31, 2020 $50,000 $56,000 Fair value of plan assets 30,000 34,000 Required a. Compute amortization of Accumulated OCIPension Gain/Loss for 2020 using the corridor approach. $ X b. Compute the balance in Accumulated OCI-Pension Gain/Loss on December 31, 2020. Note: Use a negative sign to indicate an accumulated loss. 0 Type here to search 99 79-F 5:07 PM W/14/2022 DOLL ESC F1 F2 2 F8 F3 F5 F g F10 F11 F12 Priser Insert Delete F4 H F6 PI ! @ # $ % * A & Backspace 2 3 4 5 6 7 8 9 Question 4 incorrect Mark 0.00 out of 5.00 P Flag question Computing Amortization of Pension Gain/Loss On January 1, 2020, K. Crew Inc. reported a $6,000 credit balance in its Accumulated OC --Pension Gain/Loss account related to its pension plan. During 2020, the following events occurred. Actual return on plan assets was $8,000, and expected return was $10,000.0 Again on the PBO of $4,000 was determined by the actuary at December 31, 2020, based on changes in actuarial assumptions. K. Crew amortizes unrecognized gains and losses using the corridor approach over the average remaining service life of active employees (20 years for 2020 and 2021). Further information on this plan follows. Jan. 1, 2020 Dec. 31, 2020 $50,000 $56,000 Fair value of plan assets 30,000 34,000 Required a. Compute amortization of Accumulated OCIPension Gain/Loss for 2020 using the corridor approach. $ X b. Compute the balance in Accumulated OCI-Pension Gain/Loss on December 31, 2020. Note: Use a negative sign to indicate an accumulated loss. 0 Type here to search 99 79-F 5:07 PM W/14/2022 DOLL ESC F1 F2 2 F8 F3 F5 F g F10 F11 F12 Priser Insert Delete F4 H F6 PI ! @ # $ % * A & Backspace 2 3 4 5 6 7 8 9