Question
The actuary for the pension plan of Teal Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $302,700
The actuary for the pension plan of Teal Inc. calculated the following net gains and losses.
Incurred during the Year | (Gain) or Loss | ||
---|---|---|---|
2020 | $302,700 | ||
2021 | 476,000 | ||
2022 | (212,000) | ||
2023 | (289,000) |
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 | $3,981,400 | $2,397,500 | ||
2021 | 4,538,600 | 2,194,400 | ||
2022 | 4,962,600 | 2,605,000 | ||
2023 | 4,248,400 | 3,065,800 |
Teal 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 5,200. 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 | 0 | |
2021 | 0 | |
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