Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Plan Assets Obligation Value 2024 $1,080,000 $972,000 2025 1,350,000 1,188,000 2026 1,728,000 1,566,000 2027 2,268,000 2,160,000 The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.) Year Minimum Amortization of Loss 2024 $ 2025 2026 4320 5040 2027 +A $ 0
Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Plan Assets Obligation Value 2024 $1,080,000 $972,000 2025 1,350,000 1,188,000 2026 1,728,000 1,566,000 2027 2,268,000 2,160,000 The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.) Year Minimum Amortization of Loss 2024 $ 2025 2026 4320 5040 2027 +A $ 0
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 6RE
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