Year	Projected Benefit Obligation	Plan Assets	10% Corridor	Accumulated OCI	Minimum Amortization of Gain (Loss)

Determine the total amount of pension expense to be recognized by Novak Company in 2017 and 2018.

Pension expense for 2017 Pension expense for 2018

Exercise 20-17 Novak Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. December 31, January 1, 2017 2017 2018 Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market-related asset value) Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions $2,780,000 $3,632,200 $4,175,776 1,890,000 2,421,000 2,899,000 1,700,000 2,902,000 3,796,000 200,000 (24,000) 9% 8% 10% 10% 1,032,000 603,800 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2017 and $477,000 in 2018. The accumulated OCI (PSC) on January 1, 2017, was $1,438,500. No benefits have been paid Compute the amount of accumulated oCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2017 and 2018 Amount of accumulated OCI (PSC) to be amortized for the year 2017 Amount of accumulated OCI (PSC) to be amortized for the year 2018 13 13