Question: Metlock Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation Plan Assets Value
Metlock Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
| Projected Benefit Obligation | Plan Assets Value | |||
|---|---|---|---|---|
| 2019 | $890,000 | $801,000 | ||
| 2020 | 1,112,500 | 979,000 | ||
| 2021 | 1,424,000 | 1,290,500 | ||
| 2022 | 1,869,000 | 1,780,000 |
The average remaining service life per employee in 2019 and 2020 is 8 years and in 2021 and 2022 is 11 years. The net gain or loss that occurred during each year is as follows: 2019, $146,850 gain; 2020, $35,600 gain; 2021, $26,700 loss; and 2022, $13,350 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule.
| Year | Minimum Amortization of Loss | |
|---|---|---|
| 2019 | $enter a dollar amount | |
| 2020 | $enter a dollar amount | |
| 2021 | $enter a dollar amount | |
| 2022 | $enter a dollar amount |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
