Question
Marin Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation Plan
Marin Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation | Plan Assets Value | |||
---|---|---|---|---|
2019 | $2,100,000 | $1,995,000 | ||
2020 | 2,520,000 | 2,625,000 | ||
2021 | 3,097,500 | 2,730,000 | ||
2022 | 3,780,000 | 3,150,000 |
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $294,000 loss; 2020, $94,500 loss; 2021, $11,550 loss; and 2022, $26,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year | Minimum Amortization of Loss | |
---|---|---|
2019 | $enter a dollar amount | |
2020 | $enter a dollar amount | |
2021 | $enter a dollar amount | |
2022 | $enter a dollar amount |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started