Sunland 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 $2,160,000 $2,052,000 2025 2026 2027 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, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027. $27,000 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.) 2024 2,592,000 3,186,000 3,888,000 Year Minimum Amortization of Loss 2025 2,700,000 2,808,000 3,240,000 2026 2027
Sunland 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 $2,160,000 $2,052,000 2025 2026 2027 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, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027. $27,000 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.) 2024 2,592,000 3,186,000 3,888,000 Year Minimum Amortization of Loss 2025 2,700,000 2,808,000 3,240,000 2026 2027
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 6RE
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Question
![Sunland 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
2024 $2,160,000 $2,052,000
2025
2,592,000
2,700,000
2026
2,808,000
3,240,000
2027
Year
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, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027, $27,000 gain. (In
working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
2024
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.)
Minimum Amortization of Loss
2025
3,186,000
2026
3,888,000
2027
Plan
Assets
Value
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b6ce77-7d1f-42c7-90fc-6e082dc1db1b%2Ff5792ae1-3e3c-4858-97ce-a485a654c7ab%2F65ljhr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sunland 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
2024 $2,160,000 $2,052,000
2025
2,592,000
2,700,000
2026
2,808,000
3,240,000
2027
Year
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, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027, $27,000 gain. (In
working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
2024
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.)
Minimum Amortization of Loss
2025
3,186,000
2026
3,888,000
2027
Plan
Assets
Value
100
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