Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 of 12 The actuary for the pension plan of Sweet Inc. calculated the following net gains and losses. Incurred during the Year 2020

image text in transcribed
image text in transcribed
Question 6 of 12 The actuary for the pension plan of Sweet Inc. calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 (Gain) or Loss $302,700 476,700 (209.000) (288,200) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2020 $3,993,500 $2,394,800 2021 4,542,200 2,203,200 2022 4.952.900 2,575,400 2023 4,228,400 3,066,100 Sweet 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 4,400. 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. (Round answers to decimal places, e.g. 2,500.) Year Minimum Amortization of (Gain) Loss 2020 As of January 1 2020 2021 2022 2023 Projecte benent Obligation $3.993.500 4542.200 4,952,900 4.228.400 Passes (market-related asset value) $2,394,800 2.203.200 2.575.400 3,066,100 Sweet 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 4.400. 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, (Round answers to decimal places, es, 2,500.) Year Minimum Amortization of Gain) Loss 2020 2021 $ 2022 $ 2023 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

1st Extended Canadian Edition

1118878418, 9781118878415

More Books

Students also viewed these Accounting questions