The answer is NOT $175,000 or $575,000

* Incorrect. Under the corridor approach, the corridor amount is calculated as 10% of the greater of the beginning-of-year PBO or the beginning-of-year fair value of plan assets is amortized. In this case, the fair value of the plan assets (\$5,750,000) is larger than the PBO ($5,525,000). Therefore, corridor should be calculated using the fair value of the plan assets. The corridor is $575,000($5,750,00010%). To calculate corridor amortization, the amount in excess of corridor must be amortized over the remaining service period. $175,000 is the amount in excess of corridor ($750,000575,000). This amount should be divided by the remaining service period to calculate the corridor amortization amount Madison Corp. obtains the following information from its actuary. All amounts are as of January 1, Year 4 (beginning of the year). What is the amount of corridor amortization? $17,500$25,000$575,000$175,000