Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The actuary for the pension plan of Monty Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $298,500

The actuary for the pension plan of Monty Inc. calculated the following net gains and losses.

Incurred during the Year

(Gain) or Loss

2020

$298,500

2021

482,900

2022

(211,700)

2023

(288,000)

Other information about the companys pension obligation and plan assets is as follows.

As of January 1,

Projected Benefit Obligation

Plan Assets (market-related asset value)

2020

$3,988,200 $2,397,300

2021

4,537,500 2,220,600

2022

5,045,300 2,594,600

2023

4,257,500 3,013,300

Monty 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 6,000. 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 0 decimal places, e.g. 2,500.)

Year

Minimum Amortization of (Gain) Loss

2020

$enter a dollar amount rounded to 0 decimal places

2021

$enter a dollar amount rounded to 0 decimal places

2022

$enter a dollar amount rounded to 0 decimal places

2023

$enter a dollar amount rounded to 0 decimal places

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

Wiley CPAexcel Exam Review 2018 Study Guide Auditing And Attestation

Authors: Wiley

1st Edition

1119480671, 978-1119480679

More Books

Students also viewed these Accounting questions