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Lee company has defined a benefit plan. Net Gain or LOSS Lee Company has a defined benefit pension plan. During 2018, for the first time,
Lee company has defined a benefit plan.
Net Gain or LOSS Lee Company has a defined benefit pension plan. During 2018, for the first time, Lee experienced a difference between its expected and actual projected benefit obligation. At the beginning of 2019, Lee's actuary accumulated the following information related to Lee's pension plan Net loss (1/1/2019) $40,500 Actual projected benefit obligation (1/1/2019) 228,000 Fair value of plan assets (1/1/2019) 270,000 On December 31, 2019, Lee is in the process of computing the net gain or loss to include in its pension expense for 2019. Lee has determined that the average remaining service We of its employees is 9 years. There was no difference between the company's expected and actual return on plan assets in 2019 Required: Compute the amount of the net gain or loss to include in the pension expense for 2019, assuming that Lee uses the corridor approach. Indicate whether it is an addition to or a subtraction from pension expense. Net loss added to 2019 pension expense Net Gain or Loss Lee Company has a defined benefit pension plan. During 2018, for the first time, Lee ex projected benefit obligation. At the beginning of 2019, Lee's actuary accumulated the fol Net loss (1/1/2019) $40,500 Actual projected benefit obligation (1/1/2019) 228,000 Fair value of plan assets (1/1/2019) 270,000 On December 31, 2019, Lee is in the process of computing the net gain or loss to include average remaining service life of its employees is 9 years. There was no difference betwee in 2019 Required: Compute the amount of the net gain or loss to include in the pension expense for 2019, ass whether it is an addition to or a subtraction from pension expense. Net loss added to 2019 pension expense $ Step by Step Solution
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