The following information pertains to the pension plan of Beatty Business Group:

Beginning of the Year

(Gain) Loss

for the Year

120, 000 underline 175

250,000

(4) $ (6theta, 000)

(3)

1, 280, 000

80,

(12theta, 000)

Fair Value of

Pension Plan

Assets

450,000 $

570,

1,200,000

1, 310, 000

Note that the information in Columns (2) and (3) are as of the beginning of the year, whereas the information in Column (4) is measured over the year.

The AOCI-net actuarial (gain) loss at the end of 20 * 0 was \$(70,000 . The (gain) loss for the year account represents the excess of the realized return on pension plan assets over the expected return for the specific year. When a (gain) loss was reported, the realized return was (higher) lower than the expected return during that year. The estimated remaining service period of active employees is five years for each of the calendar years.

Provide a schedule showing how the (gain) loss is amortized over the 20X1-20X6 period. Clearly indicate whether the amortization increases or decreases the pension expense in each year. (Gains should be indicated by a minus sign.)

I

PBO (2)

$

840,000 1, 00l

1,

20X6

Year

(1)

20X1

20X2

20X3 20X4

20X5

Required:

yod represents the excess of the realized return on pension plan assets over the expected return for the specific year. When a (gain) loss was reported, the realized return was (higher) lower than the expected return during that year. The estimated remaining service period of active employees is five years for each of the calendar years. Required: Provide a schedule showing how the (gain) loss is amortized over the 20X120x6 period. Clearly indicate whether the amortization increases or decreases the pension expense in each year. (Gains should be indicated by a minus sign.) Beginning of the Year For the Year End of the Year Year Projected Benefit Obligation Fair Value of Pension Plan Assets Higher of PBO or Fair Value Corridor (10%) Net Actuarial (Gain) Loss Excess of (Gain) Loss over Corridor Amortized (Gain) Loss Excess (Gain) Loss AOCI Net Actuarial (Gain) Loss 20X1 S $ 20X2 20X3 450.000 570.000 840.000 1.000.000 1.200 000 1,450,000 410,000 500 000 800,000 1,100,000 1,280.000 1,310,000 20X4 20X5 20X6