Bunker Corp. has the following beginning-of-year present values
for its accrued benefit obligation, and fair values for its pension plan assets:
Accrued
Benefit Plan
Obligation Assets
2012.............$3,500,000........$3,325,000
2013...............4,200,000.........4,375,000
2014...............5,075,000.........4,550,000
2015...............6,300,000.........5,250,000
The average remaining service life per employee in 2012 and 2013 is 10 years, and in 2014 and 2015 is 12 years. The net actuarial gain or loss that occurred during each year is as follows: 2012, $490,000 loss; 2013, $157,500 loss; 2014, $17,500 loss; and 2015, $43,740 gain. There was no opening balance in the accumulated net actuarial gain/loss account on January 1, 2012. Bunker applies the deferral and amortization approach under ASPE.
Instructions
Using the corridor approach, calculate the minimum amount of net actuarial gain or loss that should be amortized and charged to pension expense in each of the four years.