Assume that at the beginning of the current year, a company has a net gain-AOCI of...
Assume that at the beginning of the current year, a company has a net gain-AOCI of $61,000,000. At the same time, assume the PBO and the plan assets are $319,000,000 and $454,300,000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year?
Homework Answers
| Answer | |
| Explanation : | |
| Given, | |
| AOCI | $ 6,10,00,000 |
| PBO | $ 31,90,00,000 |
| Plan Assets | $ 45,43,00,000 |
| Amortization of Pension expenses | |
| = [AOCI - (PBO*10%)]/10 | |
| = [$6,10,00,000-($31,90,00,000 * 10%] / 10 | |
| = $6,10,00,000 - $3,19,00,000 / 10 | |
| = $2,91,00,000 / 10 | |
| = $29,10,000 | |
| Therefore, Amortization of Pension expenses is $29,10,000 | |
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