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Gator Corporation provides the following defined benefit pension plan data: Defined benefit, noncontributory plan with immediate full vesting Benefits paid at the end of each
Gator Corporation provides the following defined benefit pension plan data:
- Defined benefit, noncontributory plan with immediate full vesting
- Benefits paid at the end of each retirement year beginning at age 60
- Expected 9% rate of return on plan assets
- Pension benefit = Years of service .02 Average of five highest annual salaries
12/31/Year1512/31/Year14Projected benefit obligation$1,000,000$900,000Fair value of plan assets850,000750,000
- Additional InformationGator's discount rate is 7%.
- Average remaining service period of active employees expected to receive benefits is 10 years.
- Service cost for Year 15 is $100,000.
- Prior service cost recognized in other comprehensive income on 1/1/Year 15 was $300,000.
- Net gain recognized in other comprehensive income on 1/1/Year 15 was $100,000.
- The expected retirement period is 20 years.
Determine Gator Corporation's minimum required pension expense for Year 15 using the information above. Enter the appropriate amounts in the designated cells below. Indicate debit balances as positive numbers and credit balances as negative numbers using a leading minus (-) sign.
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