(Amortizatio n o f Accumulate d OC I (G/L) , Corrido r Approach , Pensio n Expens e Computation ) The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses.
Incur r ed
during the Year
(Gain) or Loss
Other information about the company’s pension obligation and plan assets is as follows.
As of January 1,
(market-related asset value)
Gustafson Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,600. The beginning balance of accumulated
OCI (G/L) is zero on January 1, 2014. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.
(Round to the nea r est dolla r .)
Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a compo- nent of net periodic pension expense for each of the years 2014, 2015, 2016, and 2017. Apply the “corridor” approach in determining the amount to be amortized each year.