Wk 5 - Team C - EXERCISE 20-1 (5-10 minutes) Exercise 20-1...

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EXERCISE 20-1 (5-10 minutes) Exercise 20-1 (5-10 minutes) (a) Computation of pension expense: Service cost $0 Interest cost ($500,000 X .10) $0 Expected return on plan assets $0 Unrecognized prior service cost amortization $0 Pension expense for 2007 $0 (b) Account Title $0 Account Title $0 Account Title $0
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EXERCISE 20-8 (20-25 minutes) Corridor and Minimum Loss Amortization Year Projected Benefit Obligation (a) Plan Asset Value (a) 10% Corridor 2006 $2,000,000 $1,900,000 $200,000 $0 $0 2007 $2,400,000 $2,500,000 $250,000 $280,000 B $3,000 2008 $2,900,000 $2,600,000 $290,000 C $367,000 D $6,417 2009 $3,600,000 $3,000,000 $360,000 E $370,583 F $882 (a) As of the beginning of the year. (b) ($280,000 - 250,000) / 10 years = $3000 (c) $280,000 - 3,000 + 90,000 = $367,000 (d) ($367,000 - 290,000) / 12 years = $6417 (e) 367,000 - 6417 + 10,000 = $370,583 (f) (370,583 - 360,000) / 12 years = $882 Cumulative Unrecognized Net Loss (a) Minimum Amortization of Loss
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(a)
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Wk 5 - Team C - EXERCISE 20-1 (5-10 minutes) Exercise 20-1...

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