Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The actuary for the pension plan of Indigo Inc. calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 (Gain)
The actuary for the pension plan of Indigo Inc. calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 (Gain) or Loss $301,600 475,200 (209,400) (291,500) 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 $3,969,700 $2,389,400 2021 4,475,900 2,190,800 2022 5,031,000 2,587,400 2023 4,233,100 3,031,200 Indigo 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 O decimal places, e.g. 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
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