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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.

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.

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