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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!