Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,000,000 $1,900,000 2020 2,400,000 2,500,000 2021 2,950,000 2,600,000 2022 3,600,000 3,000,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Instructions 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.
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,000,000 $1,900,000 2020 2,400,000 2,500,000 2021 2,950,000 2,600,000 2022 3,600,000 3,000,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Instructions 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.
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 4E
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Question
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
| Projected Benefit Obligation |
Plan Assets Value |
|||
| 2019 | $2,000,000 | $1,900,000 | ||
| 2020 | 2,400,000 | 2,500,000 | ||
| 2021 | 2,950,000 | 2,600,000 | ||
| 2022 | 3,600,000 | 3,000,000 |
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Instructions
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.
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