The actuary for the pension plan of Sheridan Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2025 2026 $302,750 476,000 2027 (212,000) 2028 (289,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2025 $3,981,400 $2,397,500 2026 4,538,600 2,194,400 2027 4,962,600 2,605,000 2028 4,248,350 3,065,800 Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,200. 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. Prepare a schedule which reflects 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.) Year 2025 2026 Projected Benefit Obligation 3981400 4538600 Plan Assets 2397500 2194400 Corridor 398140 453860 2027 4962600 2605000 496260 2028 4248400 3065800 424840 Accun OCI 山
The actuary for the pension plan of Sheridan Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2025 2026 $302,750 476,000 2027 (212,000) 2028 (289,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2025 $3,981,400 $2,397,500 2026 4,538,600 2,194,400 2027 4,962,600 2,605,000 2028 4,248,350 3,065,800 Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,200. 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. Prepare a schedule which reflects 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.) Year 2025 2026 Projected Benefit Obligation 3981400 4538600 Plan Assets 2397500 2194400 Corridor 398140 453860 2027 4962600 2605000 496260 2028 4248400 3065800 424840 Accun OCI 山
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 Sheridan Inc. calculated the following net gains and losses.
Incurred during the Year
(Gain) or Loss
2025
2026
$302,750
476,000
2027
(212,000)
2028
(289,000)
Other information about the company's pension obligation and plan assets is as follows.
Projected Benefit
Plan Assets
As of January 1,
Obligation
(market-related asset value)
2025
$3,981,400
$2,397,500
2026
4,538,600
2,194,400
2027
4,962,600
2,605,000
2028
4,248,350
3,065,800
Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for
all participating employees is 5,200. 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.
Prepare a schedule which reflects 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.)
Year
2025
2026
Projected Benefit
Obligation
3981400
4538600
Plan
Assets
2397500
2194400
Corridor
398140
453860
2027
4962600
2605000
496260
2028
4248400
3065800
424840
Accun
OCI
山
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