Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Plan Assets Obligation Value 2024 $1,080,000 $972,000 2025 1,350,000 1,188,000 2026 1,728,000 1,566,000 2027 2,268,000 2,160,000 The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.) Year Minimum Amortization of Loss 2024 $ 2025 2026 4320 5040 2027 +A $ 0
Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Plan Assets Obligation Value 2024 $1,080,000 $972,000 2025 1,350,000 1,188,000 2026 1,728,000 1,566,000 2027 2,268,000 2,160,000 The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.) Year Minimum Amortization of Loss 2024 $ 2025 2026 4320 5040 2027 +A $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension
plan assets.
Projected
Benefit
Plan
Assets
Obligation
Value
2024
$1,080,000 $972,000
2025
1,350,000 1,188,000
2026
1,728,000 1,566,000
2027
2,268,000 2,160,000
The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss
that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In
working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years,
setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.)
Year
Minimum Amortization of Loss
2024
$
2025
2026
4320
5040
2027
+A
$
0
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