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The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses Incurred during the Year (Gain) or Loss 2020 $300,000

The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses

Incurred during the Year

(Gain) or Loss

2020

$300,000

2021

480,000

2022

(210,000)

2023

(290,000)


Other information about the company’s pension obligation and plan assets is as follows.

As of January 1,

Projected Benefit
Obligation

Plan Assets
(market-related asset value)

2020

$4,000,000$2,400,000

2021

4,520,0002,200,000

2022

5,000,0002,600,000

2023

4,240,0003,040,000

Gustafson Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,600. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.

Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2020, 2021, 2022, and 2023. Apply the “corridor” approach in determining the amount to be amortized each year.

Year

Minimum Amortization of (Gain) Loss

2020

2021

2022

2023






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