Question

The actuary for the pension plan of Oriole Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $298,200 2021 484,100 2022 (207,900) 2023 (290,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Obligation Plan Assets (market-related asset value) As of January 1, 2020 $4,035,800 $2,392,400 2021 4,489,600 2,212,300 2022 4,954,600 2,584,400 2023 4,231,400 3,050,500 Oriole 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 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. 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. Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2020, 2021, 2022, and 2023. Apply the "corridor" approach in determining the amount to be amortized each year. (Round answers to 0 decimal places, eg. 2,500.)

Answer 1

XOX Answer:- ucalculation of Minimum Amortization Gain/Loos. Expected future years of Service = Avenge Service/Life per = 4400 400 = 11 years employee years projected hobusoock Corridors poo Accumulated Min. Amortization Benefit obligation' % OcI (GL) Gain/Loss 2020 $4,015,800 $2,392,400 $40.3580 $0 2021 $4,489600 $2,212,300 $448960 $ 298,200 $o 2022 $4,954,600 $2,584,400 $495,460 $782,300 $26,076 2023 $4931,400 $3050,500 $423,140 $548,324 $ 11,380 working Note: 1) Accumulated OCT-2022:- $298,200 +484100 = $788,300. 2) 6$782,300 – $495,460), = $26096 3) $782,300-$26,076-$207,900 : $548,324 548,324-423.140), = $11,380 4