Naomi Company has 200 employees who are expected to receive benefits under the company's defined benefit pension plan. The average number of service years per employee is 10 years. The actuary for the company's pension plan calculated the following net gains and losses: For the year ended December 31 (Gain) or Loss 2019 2020 2021 ($350,000) 470,000 (750,000) Prior to 2019, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related asset values follows: As of January 1 2019 Projected benefit obligation $2,300,000 2020 $2,450,000 2021 $2,840,000 Market-related asset values 2,150,000 2,520,000 2,600,000 Required: Based on the above information, prepare a schedule which reflects the amount of unrecognized net gain or loss to be amortized by the company as a component of pension expense for the years 2019, 2020, and 2021, using the corridor approach.
Naomi Company has 200 employees who are expected to receive benefits under the company's defined benefit pension plan. The average number of service years per employee is 10 years. The actuary for the company's pension plan calculated the following net gains and losses: For the year ended December 31 (Gain) or Loss 2019 2020 2021 ($350,000) 470,000 (750,000) Prior to 2019, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related asset values follows: As of January 1 2019 Projected benefit obligation $2,300,000 2020 $2,450,000 2021 $2,840,000 Market-related asset values 2,150,000 2,520,000 2,600,000 Required: Based on the above information, prepare a schedule which reflects the amount of unrecognized net gain or loss to be amortized by the company as a component of pension expense for the years 2019, 2020, and 2021, using the corridor approach.
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 3P
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