Solution-Computation of gain or loss component

Computation of gain or loss component

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Reference no: EM13553631

Computation of Gain or Loss Component

The gain or loss component of pension expense consists of (1) a deferral of the difference between actual and expected return on the pension fund and (2) amortization of unrecognized pension gains and losses. Determine the proper addition (deduction) to pension expense related to the gain or loss component under each of the following independent conditions.

	A	B	C	D
(1) Actual return on the pension fund	$200,000	$200,000	$500,000	$500,000
(2) Expected return on the pension fund	$180,000	$230,000	$400,000	$550,000
(3) Unrecognized (gain) loss at beginning of year	$200,000	$275,000	$(100,000)	$(75,000)
(4) Average service life of employees used for amortization	10 years	5 years	8 years	12 years
(5) Corridor amount	$100,000	$150,000	$50,000	$175,000

Reference no: EM13553631

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Computation of gain or loss component

Reference no: EM13553631

Reference no: EM13553631

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