Jana Smith Company had the following information regarding their pension plans at the end of 2021, 2022,
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Question:
December 31, 2021
PBO $25 million
PPA $19 million
Unrecognized loss recorded on December 31, 2021 $4 million
Average remaining service years 10 years
December 31, 2022
PBO $30 million
PPA $26 million
Unrecognized loss recorded on December 31, 2022 $1.2 million
Average remaining service years 10 years
December 31, 2023
PBO $31.5 million
PPA $23.6 million
Unrecognized gain recorded on December 31, 2023 $0.8 million
Average remaining service years 9 years
REQUIRED:
For each case, compute the amortization of the unrecognized loss using the corridor amortization
method for 2022 and 2023. Show computations.
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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