Amortizing Pension Gain/Loss On June 1, 2018, West Corporation established a defined benefit pension plan for its employees. The following information was available in 2020: Balance Jan. 1, 2020 Projected Benefit Obligation $5,075,000 Cr. Plan Assets 5,250,000 Dr. Accumulated OCI—Pension Gain/Loss 892,500 Cr. For 2021, compute the amortization of the account, Accumulated OCI—Pension Gain/Loss, assuming that the company uses the corridor approach in determining the minimum amortization to recognize. Assume that the average remaining service life of employees is 10 years. Note: Do not use a negative sign with your answer. Amortization of Pension Gain/Loss
Amortizing Pension Gain/Loss On June 1, 2018, West Corporation established a defined benefit pension plan for its employees. The following information was available in 2020: Balance Jan. 1, 2020 Projected Benefit Obligation $5,075,000 Cr. Plan Assets 5,250,000 Dr. Accumulated OCI—Pension Gain/Loss 892,500 Cr. For 2021, compute the amortization of the account, Accumulated OCI—Pension Gain/Loss, assuming that the company uses the corridor approach in determining the minimum amortization to recognize. Assume that the average remaining service life of employees is 10 years. Note: Do not use a negative sign with your answer. Amortization of Pension Gain/Loss
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 6E
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Amortizing Pension Gain/Loss
On June 1, 2018, West Corporation established a defined benefit pension plan for its employees. The following information was available in 2020:
| Balance | Jan. 1, 2020 |
|---|---|
| Projected Benefit Obligation | $5,075,000 Cr. |
| Plan Assets | 5,250,000 Dr. |
| Accumulated OCI—Pension Gain/Loss | 892,500 Cr. |
For 2021, compute the amortization of the account, Accumulated OCI—Pension Gain/Loss, assuming that the company uses the corridor approach in determining the minimum amortization to recognize. Assume that the average remaining service life of employees is 10 years.
Note: Do not use a negative sign with your answer.
| Amortization of Pension Gain/Loss |
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