Solution Library

Calculation Of Amount Of AOCI Amortization

Question

The following information relates to the pension plan for the employees of Turner Co.: Turner estimates that the average remaining service life is 16 years. Turner's contribution was $378,000 in 2013 and benefits paid were $282,000.

 

1/1/12

1/1/13

1/1/14

Projected benefit obligation

2,790,000

2,988,000

4,002,000

Fair value of plan assets

2,550,000

3,120,000

3,444,000

AOCI- net (gain) or loss

-0-

(432,000) 

(480,000)

Settlement rate (for year)

 

11%

11%

Expected rate of return (for year)

8%

7%

 

Turner estimates that the average remaining service life is 16 years. Turner's contribution was $378,000 in 2013 and benefits paid were $282,000.

To calculate the amount of AOCI (net gain) amortization in 2013, the corridor we should use is

a. 10% of 2,988,000.

b. 10% of 3,120,000

c. 10% Of 3,444,000

d. 10% of 4,002,000

Summary

The question belongs to Accounting and it discusses about calculation of amount of AOCI amortization for the year.

Total Word Count 24

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.