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 $60,500,000. At the same time, assume the PBO and the plan assets are $315,000,000 and $451,200,000, 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?
Multiple Choice
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$1,533,000.
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$13,620,000.
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$6,050,000.
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$1,538,000.
Homework Answers
Answer) $1538000
[ Net Gain AOCI - ( Plan Assets x 10%) ] / 10 years = Amortization expense for the year
[ 60500000 - ( 451200000 x 10% ) ] / 10 = 1538000
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Assume that at the beginning of the current year, a company has a net gain-AOCI of...
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