Central Innovations Company sponsors a defined-benefit pension plan for its 175 employees. The companys actuary provided the

Central Innovations Company sponsors a defined-benefit pension plan for its 175 employees. The company’s actuary provided the following information about the plan.

The average remaining service life per employee is 7 years. The service cost component of net periodic pension expense for employee services rendered amounted to $175,000 in 2014 and $220,000 in 2015. Accumulated OCI (PSC) on January 1, 2014, was $525,000. No benefits have been paid.

Instructions
(Round to the nearest dollar.)
(a) Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2014 and 2015.
(b) Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of net periodic pension expense for 2014 and 2015.
(c) Determine the total amount of net periodic pension expense to be recognized by Central Innovations Company in 2014 and2015.

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January 1 2014 December 31 2014 2015 Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market related $1,650,000 $2,150,000 $2,680,000 2,165,000 1,400,000 1,710,000 asset value) Accumulated net (gain) or loss (for purposes 1,350,000 1,900,000 2,350,000 of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate (150,000) 10% 6% (215,000) 8% 6%