Selected Information about the pension plan of Roman Co. is as follows: 12/31/25 12/31/26 Accumulated benefit obligation $4,700,000 $4,930,000 Projected benefit obligation 4,950,000 5,200,000 Accumulated OCI (PSC) 1,800,000 1,500,000 Fair value of plan assets 4,750,000 4,950,000 Pension expense 1,000,000 1,900,000 Contribution 985,000 1,550,000 Discount rate (for year) 9% 8% Instructions (a) What is the corridor for 2026?

solution (a) .10 $4,950,000 = $495,000; .10 $4,750,000 = $475,000 The corridor is the larger, $495,000.

I know the answer but why did they times the 4,950,000 by .10? Where does the .10 come from