The actuary for the pension plan of Crane Company calculated the following net gains and losses: Incurred during the Year 2025 2026 2027 Other information about the company's pension obligation and plan assets is as follows: As of January 1 2028 Plan Assets (market-related asset value) $4,053,000 $3,264,000 2026 4,553,000 3,740,000 2027 4,803,000 3,904,000 2028 5,302,000 4,571,000 Crane 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 3,750. 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. 2025 2025 2026 2027 2028 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 0 decimal places, e.g. 2,500. Enter negative amounts using either a negative sign preceding the number e.g.-15,000 or parentheses eg. (15,000).) Year Minimum Amortization of (Gain) Loss (Gain) or Loss $(651,000) 257,000 1,025,000 Projected Benefit Obligation 395,000 $ 10 $ 10
The actuary for the pension plan of Crane Company calculated the following net gains and losses: Incurred during the Year 2025 2026 2027 Other information about the company's pension obligation and plan assets is as follows: As of January 1 2028 Plan Assets (market-related asset value) $4,053,000 $3,264,000 2026 4,553,000 3,740,000 2027 4,803,000 3,904,000 2028 5,302,000 4,571,000 Crane 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 3,750. 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. 2025 2025 2026 2027 2028 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 0 decimal places, e.g. 2,500. Enter negative amounts using either a negative sign preceding the number e.g.-15,000 or parentheses eg. (15,000).) Year Minimum Amortization of (Gain) Loss (Gain) or Loss $(651,000) 257,000 1,025,000 Projected Benefit Obligation 395,000 $ 10 $ 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The actuary for the pension plan of Crane Company calculated the following net gains and losses:
Incurred during the Year
2025
2026
As of January 1
2027
2025
2028
2026
2027
Other information about the company's pension obligation and plan assets is as follows:
2025
2026
2027
2028
(Gain) or Loss
$(651,000)
$
257,000
Projected Benefit
Obligation
$
1,025,000
$
395,000
$
3,904,000
2028
5,302,000
4,571,000
Crane 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 3,750. 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.
Year Minimum Amortization of (Gain) Loss
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).)
$4,053,000
4,553,000
4,803,000
Plan Assets
(market-related asset value)
$3,264,000.
3,740,000
1
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