Question
The actuary for the pension plan of Sheffield Company calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $(673,000)
The actuary for the pension plan of Sheffield Company calculated the following net gains and losses.
Incurred during the Year | (Gain) or Loss | |
---|---|---|
2020 | $(673,000) | |
2021 | 244,000 | |
2022 | 1,025,000 | |
2023 | 391,000 |
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 | $4,120,000 | $3,557,000 | ||
2021 | 4,702,000 | 3,695,000 | ||
2022 | 4,870,000 | 3,919,000 | ||
2023 | 5,035,000 | 4,290,000 |
Sheffield Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service-years for all participating employees are 3,000. 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. Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
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 |
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