At the Beginning of the Current Year,a Pension Has Assets

question 30

Essay

At the beginning of the current year,a pension has assets of $84,500,000 and accrued benefit obligation of $87,500,000.At this time,unamortized actuarial losses were $6,750,000 on plan assets and $2,800,000 on plan obligations.The expected average remaining service lives (EARSL)of current employees is 10 years.
Requirement:
Compute the minimum corridor amortization.

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Definitions:

Optimum Performance

The highest level of efficiency, productivity, or effectiveness that can be achieved in a specific context.

Attainable Standards

Realistic standards that can be achieved under current operating conditions, often used in cost and management accounting.

Standard Cost System

An accounting system that uses standard costs for product costs for the purposes of cost control and decision making.

Process Costing

An accounting methodology used for industries where production is continuous, attributing costs to units of product based on the processes they go through.