Question
SOAPCO has the following beginning-og-the-year present values for its PBO and Plan Assets: PBO Plan Assets 2019 $1,600,000 $1,580,000 2020 1,920,000 2,000,000 2021 2,660,000 2,500,000
- SOAPCO has the following beginning-og-the-year present values for its PBO and Plan Assets:
PBO Plan Assets
2019 $1,600,000 $1,580,000
2020 1,920,000 2,000,000
2021 2,660,000 2,500,000
2022 2,740,000 2,650,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. SOAPCO began 2019 with a $200,000 net gain and the net gain or loss the occurred during each year is as follows: 2019, $64,000 gain; 2020, $10,000 gain; 2021, $34,000 gain; and 2022, $20,000 loss. Using the corridor approach, please compute the amount of net gain or loss amortized to be charged to pension expense in each of the four years.
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