The actuary for the pension plan of Carla Vista Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(634,000) 2026 250,000 2027 1,020,000 2028 393,000 Other information about the company's pension obligation and plan assets is as follows: Projected Benefit As of January 1 Obligation Plan Assets (market-related asset value) 2025 $3,957,000 $3,563,000 2026 4,608,000 3,543,000 2027 4,690,000 3,729,000 2028 5,257,000 4,386,000 Carla Vista Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service- years for all participating employees are 2,750. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of Accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2025, 2026, 2027, and 2028. Apply the "corridor" approach in determining the amount to be amortized each year. (Round answers to O decimal places, e.g. 2,500. Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).) Year Minimum Amortization of (Gain) Loss 2025 2026 2027 2028 SA SA SA SA
The actuary for the pension plan of Carla Vista Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(634,000) 2026 250,000 2027 1,020,000 2028 393,000 Other information about the company's pension obligation and plan assets is as follows: Projected Benefit As of January 1 Obligation Plan Assets (market-related asset value) 2025 $3,957,000 $3,563,000 2026 4,608,000 3,543,000 2027 4,690,000 3,729,000 2028 5,257,000 4,386,000 Carla Vista Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service- years for all participating employees are 2,750. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of Accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2025, 2026, 2027, and 2028. Apply the "corridor" approach in determining the amount to be amortized each year. (Round answers to O decimal places, e.g. 2,500. Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).) Year Minimum Amortization of (Gain) Loss 2025 2026 2027 2028 SA SA SA SA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The actuary for the pension plan of Carla Vista Company calculated the following net gains and losses:
Incurred during the Year
(Gain) or Loss
2025
$(634,000)
2026
250,000
2027
1,020,000
2028
393,000
Other information about the company's pension obligation and plan assets is as follows:
Projected Benefit
As of January 1
Obligation
Plan Assets
(market-related asset value)
2025
$3,957,000
$3,563,000
2026
4,608,000
3,543,000
2027
4,690,000
3,729,000
2028
5,257,000
4,386,000
Carla Vista Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service-
years for all participating employees are 2,750. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2025. The
market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per
employee as the basis for amortization.
Compute the minimum amount of Accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the
years 2025, 2026, 2027, and 2028. Apply the "corridor" approach in determining the amount to be amortized each year. (Round
answers to O decimal places, e.g. 2,500. Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses
e.g. (15,000).)
Year
Minimum Amortization of (Gain) Loss
2025
2026
2027
2028
SA
SA
SA
SA
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education