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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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shobha
Transcribed Image Text:Oriole Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for
its pension plan assets.
2024
2025
2026
2027
2024
Projected
Benefit
Obligation
$2,320,000 $2,204,000
2025
2,784,000
2026
3,422,000
2027
4,176,000
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, $324,800 loss; 2025, $104,400 loss; 2026, $12,760 loss; and 2027, $29,000 gain.
(In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Plan
Assets
Value
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.)
2,900,000
Year Minimum Amortization of Loss
3,016,000
$
3,480,000
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