"2-10-2010

"2-10-2010 - EXERCISE 20-16 The excess of the...

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EXERCISE 20-16 The excess of the cumulative net gain or loss over the corridor amount is amortized by dividing the excess by the average remaining service period of employees. The average remaining service period is computed as follows: Expected future years of service Number of employees = Average remaining service life per employee Average remaining service life per employee = 5,600 400 = 14. Amortization of Net (Gain) or Loss (Gain) or Loss For the Year Ended December 31, Amount 2010 ( 300,000 2011 ( 480,000 2012 (210,000) 2013 (290,000) Year Projected Benefit Obligation (a) Plan Assets (a) Corridor (b) Accumulated OCI (G/L) (a) Minimum Amortization of (Gain) Loss 2010 $4,000,000 $2,400,000 $400,000 $ 0 $ 0 2011 4,520,000 2,200,000 452,000 300,000 0 2012 5,000,000 2,600,000 500,000 780,000 20,000(c) 2013 4,240,000 3,040,000 424,000 550,000(d) 9,000(e) (a) As of the beginning of the year. (b) The corridor is 10 percent of the greater of the projected benefit obligation or plan assets. (c)
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This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue.

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"2-10-2010 - EXERCISE 20-16 The excess of the...

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