Carla Vista 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 Plan Benefit Assets Obligation Value 2024 $2,180,000 $2,071,000 2025 2,616,000 2,725,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Carla Vista 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
Plan
Assets
Value
2024
$2,180,000 $2,071,000
2025
2,616,000
2,725,000
2026
3,215,500
2,834,000
2027
3,924,000
3,270,000
The average remaining service life per employee in 2024 and 2025 is 10 years; and in 2026 and 2027, is 12 years. The net gain or loss
that occurred during each year is as follows: 2024, $305,200 loss; 2025, $98,100 loss; 2026, $11,990 loss; and 2027, $27,250 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. (Do not leave any answer field blank. Enter O for amounts.)
Year
Minimum Amortization of Loss
2024
$
0
2025
2026
2027
Transcribed Image Text:Carla Vista 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 Plan Assets Value 2024 $2,180,000 $2,071,000 2025 2,616,000 2,725,000 2026 3,215,500 2,834,000 2027 3,924,000 3,270,000 The average remaining service life per employee in 2024 and 2025 is 10 years; and in 2026 and 2027, is 12 years. The net gain or loss that occurred during each year is as follows: 2024, $305,200 loss; 2025, $98,100 loss; 2026, $11,990 loss; and 2027, $27,250 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. (Do not leave any answer field blank. Enter O for amounts.) Year Minimum Amortization of Loss 2024 $ 0 2025 2026 2027
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