Determine the amortization of the net gain

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Reference no: EM135909

Montoya Company has available the subsequent information about its defined benefit pension plan for the year ended 31^st December,2011.

Service Cost for 2011 $ 25,000

Accumulated benefit obligation 683,000

Plan assets at fair value 630,000

Accumulated OCI(Psc) 300,000

Vested Benefit ObligATION 505,000

Market Related Asset Value 725,000

Projected benefit obligation 865,000

Accumulated OCI net gain 90,000

Interest on projected benefit obligation 64,000

a. Determine the pension liability/ asset to be recorded at 31^st December, 2011.

b. Determine the 2012 amortization of the net gain. The average residual service life of employee is 10 years.

Reference no: EM135909

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