Cullumber Company has 120 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,200. The actuary for the company's pension plan calculated the following net gains and losses:For the Year EndedDecember 31 (Gain) Or Loss 2020 $560,000 2021 (474,000)2022 910,000 Prior to 2020, there was no unrecognized net gain or loss.Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows: As of January 1 2020 2021 2022Projected benefit obligation $2,020,000 $2,260,000 $2,860,000Fair value of plan assets 1,600,000 2,380,000 2,470,000Based on the above information about Cullumber Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2020, 2021, and 2022. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees. Beginning of Year Projected BenefitObligation PlanAssets Corridor AccumulatedOCI (Gain/Loss) Amortization2020 $ $ $ $ $ 2021 2022

On a straight line basis, depreciation and amortization, or the process of expensing an asset over a…

Answered: mber Company has 120 employees who are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Cullumber Company has 120 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,200. The actuary for the company's pension plan calculated the following net gains and losses:

For the Year Ended December 31		(Gain) Or Loss
2020		$560,000
2021		(474,000)
2022		910,000

Prior to 2020, there was no unrecognized net gain or loss.

Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows:

	As of January 1
	2020	2021	2022
Projected benefit obligation	$2,020,000	$2,260,000	$2,860,000
Fair value of plan assets	1,600,000	2,380,000	2,470,000

Based on the above information about Cullumber Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2020, 2021, and 2022. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees.

	Beginning of Year
	Projected Benefit Obligation	Plan Assets	Corridor	Accumulated OCI (Gain/Loss)	Amortization
2020	$	$	$	$	$
2021
2022

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