Wk 5 - Team C

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

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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
(a)

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

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