Question
Nash Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan. January 1, December
Nash Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan.
January 1, | December 31, | ||||||
2020 | 2020 | 2021 | |||||
Projected benefit obligation | $2,790,000 | $3,640,100 | $4,176,308 | ||||
Accumulated benefit obligation | 1,920,000 | 2,441,000 | 2,908,000 | ||||
Plan assets (fair value and market-related asset value) | 1,700,000 | 2,893,000 | 3,814,000 | ||||
Accumulated net (gain) or loss (for purposes of the corridor calculation) | 0 | 200,000 | (25,000 | ) | |||
Discount rate (current settlement rate) | 9 | % | 8 | % | |||
Actual and expected asset return rate | 10 | % | 10 | % | |||
Contributions | 1,023,000 | 631,700 |
The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $399,000 in 2020 and $470,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,386,000. No benefits have been paid.
Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2020 and 2021.
Year | Projected Benefit Obligation | Plan Assets | 10% Corridor | Accumulated OCI (G/L) | Minimum Amortization of (Gain) Loss | |||||
2020 | $ | $ | $ | $ | $ | |||||
2021 |
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