Question

Question 5 View Policies Current Attempt in Progress The actuary for the pension plan of Sweet Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $301,600 2021 475,200 2022 (209,400) 2023 (291,500) 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 $3,969,700 $2,389,400 2021 4,475,900 2,190,800 2022 2,587,400 5,031,000 4,233,100 2023 3,031,200

Answer 1

Computation of 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:-
Year	Projected Benefit Obligation as of Jan 1	Plan Assets as of Jan 1	Higher of (Projected Benefit Obligation or Plan Assets)	Corridor	Accumulated OCI - (Gain) or Loss at the beginning of year	Excess at the beginning of theyear	Average Remaining Service period in years	Minimum net (Gain) or loss (gain) amortized	Net (Gain) or loss during the year	Accumulated OCI - (Gain) or Loss at the end of year
a	b	c	d = Higher of (b or c)	e = 10% of d	f	g = (f-e) or 0	h =4400/400	i = g/h	j	k = f-i+j
2020	$3,969,700	$2,389,400	$3,969,700	$396,970	$0	$0	11	$0	$   301,600	$301,600
2021	$4,475,900	$2,190,800	$4,475,900	$447,590	$301,600	$0	11	$0	$   475,200	$776,800
2022	$5,031,000	$2,587,400	$5,031,000	$503,100	$776,800	$273,700	11	$24,882	$ (209,400)	$542,518
2023	$4,233,100	$3,031,200	$4,233,100	$423,310	$542,518	$119,208	11	$10,837	$ (291,500)	$240,181

Year	Amount of net (gain) or loss amortized and charged to pension expense
2020	$0
2021	$0
2022	$24,882
2023	$10,837

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