|
E20.16.
|
(amortization of
Accumulated Oci (g/l), Corridor Approach, Pension Expense Computation)
The actuary for the pension plan of Gustafson
Inc. calculated the following net gains and losses.
|
Incurred during the Year
|
(Gain) or Loss
|
|
2012
|
$300,000?
|
|
2013
|
?480,000?
|
|
2014
|
?(210,000)
|
|
2015
|
?(290,000)
|
|
|
Other information about the company's pension
obligation and plan assets is as follows.
|
As of January 1,
|
Projected Benefit Obligation
|
Plan Assets (market-related asset
value)
|
|
2012
|
$4,000,000
|
$2,400,000
|
|
2013
|
?4,520,000
|
?2,200,000
|
|
2014
|
?5,000,000
|
?2,600,000
|
|
2015
|
?4,240,000
|
?3,040,000
|
|
|
Gustafson 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 5,600. The beginning balance
of accumulated OCI (G/L) is zero on January 1, 2012. 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.
Instructions
(Round to the nearest dollar.)
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 2012, 2013, 2014, and 2015. Apply the
“corridor” approach in determining the amount to be amortized each year.
|