2. ABC, Inc. has the following information related to the pension plan. Beginning of the Year 2021 Projected benefit obligation Market-related asset value 2020 $2,000,000 1,000,000 2022 $3,000,000 $4,000,000 4,000,000 5,000,000 ABC recorded in Other Comprehensive Income actuarial losses of $600,000 in 2020 and actuarial gains of $1,000,000 in 2021. ABC has actuarial gains of $100,000 at the beginning of 2020. Assume the average remaining service lives for all employees is 5 years. What minimum amount of amortization will ABC record in 2020, 2021, and 2022 and what is the impact on the pension expense for 2022?

2. ABC, Inc. has the following information related to the pension plan. Beginning of the Year 2021 Projected benefit obligation Market-related asset value 2020 $2,000,000 1,000,000 2022 $3,000,000 $4,000,000 4,000,000 5,000,000 ABC recorded in Other Comprehensive Income actuarial losses of $600,000 in 2020 and actuarial gains of $1,000,000 in 2021. ABC has actuarial gains of $100,000 at the beginning of 2020. Assume the average remaining service lives for all employees is 5 years. What minimum amount of amortization will ABC record in 2020, 2021, and 2022 and what is the impact on the pension expense for 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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