Bridgeport Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation 2019 $2,060,000 $1,957,000 2020 2,472,000 2021 3,038,500 2022 3,708,000 Plan Assets Value 2,575,000 2,678,000 3,090,000
Bridgeport Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation 2019 $2,060,000 $1,957,000 2020 2,472,000 2021 3,038,500 2022 3,708,000 Plan Assets Value 2,575,000 2,678,000 3,090,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four
years, setting up an appropriate schedule.
Year
2019
2020
2021
2022
Minimum Amortization of Loss
$
$
0
3090
Transcribed Image Text:Bridgeport Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values
for its pension plan assets.
2019
2020
2021
2022
Projected
Benefit
Obligation
$2,060,000
2,472,000
3,038,500
3,708,000
Plan
Assets
Value
$1,957,000
2,575,000
2,678,000
3,090,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss
that occurred during each year is as follows: 2019, $288,400 loss; 2020, $92,700 loss; 2021, $11,330 loss; and 2022, $25,750 gain. (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 four
years, setting up an appropriate schedule.
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