Reference no: EM133136146

Question - Vickie Plato, an accounting clerk in the personnel office of Streisand Corp., has begun to compute pension expenses for 2019 but is not sure whether or not she should include the amortization of unrecognized gains/losses. She is currently working with the following beginning-of-the-year present values for the projected benefit obligation and market-related values for the pension plan:

	Projected Benefit Obligation	Plan Assets Value
2016	$2,200,000	$1,900,000
2017	2,400,000	2,500,000
2018	2,900,000	2,600,000
2019	3,900,000	3,000,000

The average remaining service life per employee in 2016 and 2017 is 10 years and in 2018 and 2019 is 12 years. The net gain or loss that occurred during each year is as follows.

2016	$280,000	Loss
2017	85,000	Loss
2018	12,000	Loss
2019	25,000	Gain

Answer the following questions in the Discussion Board:

You are the manager in charge of accounting writing a memo to Vickie Plato explaining why in some years she must amortize some of the net gains and losses and in other years she does not need to. To explain this situation fully, you must compute the amount of net gain or loss that is amortized and charged to pension expenses in each of the 4 years listed above. Include an appropriate amortization schedule, referring to it whenever necessary.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2017). Financial accounting and accounting standards. Intermediate accounting (17th ed.). John Wiley & Sons, Inc.