What is the effect of the ASC Corridor Amortization

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Reference no: EM132040330

What is the effect of the 10% ASC Corridor Amortization on the 2019 Pension Expense of Fox Co. based on the following info?

Pension data for the 2019 calendar year:Service Cost$ 70,000 Actual return on plan assets 9%

Benefits to retirees 60,000 Expected return on plan assets 7%

Cash contributions 50,000 Settlement rate 6%

Fox's Beginning 2019 Info (December 31, 2018 balances):Plan Assets$ 700,000

Projected Benefit Obligation (PBO) 850,000

Accumulated net other comprehensive loss (average service life is 10 years) 175,000

Prior Service Cost (PSC-Fox uses years of service amortization method) 300,000

(This PSC is attributable to 80 employees who are expected to retire as follows: 10 retire in 2 years, 15 in 3 years, 20 in 4 years, and 35 in 5 years)

$10,500 decrease

$9,000 increase

$9,000 decrease

$10,500 increase

Reference no: EM132040330

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