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Corridor approach (amortization of net gains and losses.) Gibbs Company has 200 employees who are expected to receive benefits under the company's defined-benefit pension plan.
Corridor approach (amortization of net gains and losses.) Gibbs Company has 200 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 2,000. The actuary for the company's pension plan calculated the following net gains and losses:
are usuu procedures used Guild A PupUUUU auuuuan Ice when to C. recorded in other comprehensive income (PSC). d, reported as an expense in the period the plan is amended. IH. Corridor approach (amortization of net gains and losses.) Gibbs Company has 200 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 2,000. The actuary for the company's pension plan calculated the following net gains and losses: IOUs For the Year Ended December 31 Gain or Loss 2014 $ 640,000 Gain 2015 554,000 Loss 2016 990,000 Loss Prior to 2014, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and fair value of plan assets follows: Inui 201 201 2016 Projected benefit obligation $2,100,000 $2,340,000 $2,940,000 Fair value of plan assets 1,680,000 2,460,000 2,550,000 Instructions Based on the above information about Gibbs 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 2014, 2015, and 2016. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees
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