Question
The following data are for the pension plan for the employees of Lockett Company. 1/1/20 12/31/20 12/31/21 Accumulated benefit obligation $5,000,000 $5,200,000 $6,800,000 Projected benefit
The following data are for the pension plan for the employees of Lockett Company.
1/1/20 12/31/20 12/31/21
Accumulated benefit obligation $5,000,000 $5,200,000 $6,800,000
Projected benefit obligation 5,400,000 5,600,000 7,400,000
Plan assets (at fair value) 4,600,000 6,000,000 6,600,000
AOCL net loss -0- 960,000 1,000,000
Settlement rate (for year) 10% 9%
Expected rate of return (for year) 8% 7%
Locketts contribution was $840,000 in 2021 and benefits paid were $750,000. Lockett estimates that the average remaining service life is 15 years. What is corridor for 2021?
Question 18 options:
| $560,000 |
| $740,000 |
| $660,000 |
| $600,000 |
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