The actuary for the pension plan of Joyce Bush Inc. calculated the following net gains and losses.
Unrecognized Net Gain or Loss
Incurred
during the Year (Gain) or Loss
2010...............................................................$ 300,000
2011..................................................................480,000
2012............................................................... (210,000)
2013............................................................... (290,000)
Other information about the company€™s pension obligation and plan assets is as follows.

Joyce Bush Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The beginning balance of unrecognized net gain or loss is zero on January 1, 2010. Use the average remaining service life per employee of 14 years as the basis for amortization.

Instructions
(a) Prepare a schedule that reflects the minimum amount of unrecognized net gain or loss amortized as a component of net periodic pension expense for each of the years 2010, 2011, 2012, and 2013. Apply the corridor approach in determining the amount to be amortized each year.
(b) Assume that Bush elects to recognize actuarial gains and losses immediately in other comprehensive income. Determine the effect of this accounting choice on pension expense in 2010, 2011, 2012, and 2013 in comparison to pension expense under corridoramortization.

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As ofJanuary 1 Defined Benefit Obligation Plan Assets (fair value 2010 2011 2012 2013 $4,000,000 4,520,000 4,980,000 4,250,000 $2,400,000 2,200,000 2,600,000 3,040,000