11. What is the amortization of the net gain/loss for Year 2002 using the Corridor Method?...

  

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11. What is the amortization of the net gain/loss for Year 2002 using the Corridor Method? Enter a gain as a positive value, loss as a negative value, or 0 if neither is incurred. Do not use any symbols. 12. What is the net impact to the Plan Assets account from the cash contributions to the pension plan AND the benefits paid to retirees both during Year 2002? A. $30,200 Net Increase to Plan Assets B. $48,000 Net Increase to Plan Assets C. $33,000 Net Decrease to Plan Assets D. $15,000 Net Increase to Plan Assets Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return on Plan Assets 4% Projected benefit obligation at the beginning of 2002 $ 350,000 Service cost, 2002 $ 42,000 $ (26,000) CY G/L on PBO from changes in assumptions $ (33,000) Loss (Gain) on PBO for the current year Less: Benefits paid to retirees during the year Projected benefit obligation at the end of 2002 $ 361,000 $ 380,000 $ 48,000 $ (33,000) $ 410,200 Plan assets at the beginning of the year Cash contributions to the pension plan in 2002 Less: Benefits paid to retirees during the year (same as above) Plan assets at the end of 2002 Beginning balance in cash account $ 80,000 Additional information reported from the actuary and plan trustee: $75,375 PY changes to plan formula $ (77,000) PY difference between actual/expected retum on plan Prior Service Costs incurred beginning of 2001 due to a plan amendment Beginning 2002 year balance AOCI for Net Gain (prev. gains > prev. losses) assets AND PY G/L on PBO from assumptions Average remaining service years of employees 15 years Beginning of year 2002 balance in AOCI for PSC $ 62,000 11. What is the amortization of the net gain/loss for Year 2002 using the Corridor Method? Enter a gain as a positive value, loss as a negative value, or 0 if neither is incurred. Do not use any symbols. 12. What is the net impact to the Plan Assets account from the cash contributions to the pension plan AND the benefits paid to retirees both during Year 2002? A. $30,200 Net Increase to Plan Assets B. $48,000 Net Increase to Plan Assets C. $33,000 Net Decrease to Plan Assets D. $15,000 Net Increase to Plan Assets Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return on Plan Assets 4% Projected benefit obligation at the beginning of 2002 $ 350,000 Service cost, 2002 $ 42,000 $ (26,000) CY G/L on PBO from changes in assumptions $ (33,000) Loss (Gain) on PBO for the current year Less: Benefits paid to retirees during the year Projected benefit obligation at the end of 2002 $ 361,000 $ 380,000 $ 48,000 $ (33,000) $ 410,200 Plan assets at the beginning of the year Cash contributions to the pension plan in 2002 Less: Benefits paid to retirees during the year (same as above) Plan assets at the end of 2002 Beginning balance in cash account $ 80,000 Additional information reported from the actuary and plan trustee: $75,375 PY changes to plan formula $ (77,000) PY difference between actual/expected retum on plan Prior Service Costs incurred beginning of 2001 due to a plan amendment Beginning 2002 year balance AOCI for Net Gain (prev. gains > prev. losses) assets AND PY G/L on PBO from assumptions Average remaining service years of employees 15 years Beginning of year 2002 balance in AOCI for PSC $ 62,000

Answer rating: 100% (QA)

Under Corridor method we calculate a corridor amount or maximum limit ie 10 of higher of Projected b... View the full answer