Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The actuary for the pension plan of Oriole Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $298,200

image text in transcribedimage text in transcribed

The actuary for the pension plan of Oriole Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $298,200 2021 484,100 2022 (207,900) 2023 (290,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Obligation Plan Assets (market-related asset value) As of January 1, 2020 $4,035,800 $2,392,400 2021 4,489,600 2,212,300 2022 4,954,600 2,584,400 2023 4,231,400 3,050,500 Oriole 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 0 decimal places, eg. 2,500.) Oriole 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 0 decimal places, e.g. 2,500.) Year Minimum Amortization of (Gain) Loss 2020 to 2021 0 2022 0 28684 2023 0

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_2

Step: 3

blur-text-image_3

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

Accounting For Sustainability

Authors: Gunnar Rimmel

1st Edition

0367478927, 9780367478926

More Books

Students also viewed these Accounting questions

Question

List several personal qualities that help people to be happy.

Answered: 1 week ago