Odakota Canoes Has Had a Defined Benefit Pension Plan for Three

question 57

Essay

Odakota Canoes has had a defined benefit pension plan for three decades.Two years ago,the company improved the benefits at a cost of $1,000,000.These benefits vest to employees five years after the plan amendment.At the beginning of the current year,the company had unamortized actuarial gains of $10,400,000.Pension plan assets were $95,200,000 while pension obligations were $93,200,000 at the beginning of the year.
For the current year,Odakota's pension plan incurred current service cost of $6,100,000 and interest of $7,456,000.The pension's assets earned $7,316,000,which is $300,000 below expectations.The expected average remaining service lives (EARSL)of current employees is 8 years.
Requirement:
Compute the pension expense assuming Odakota treats unamortized actuarial gains and losses either (i)using the corridor approach or (ii)flowing the gains and losses through other comprehensive income (OCI).

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Definitions:

DPCI Score

A metric or score, possibly specific to a certain context or organization, not recognized universally as a standardized metric.

Darnall-Preston Complexity Index

A framework used to assess the complexity of managing projects, focusing on organizational, external, and technological factors.

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DPCI Score

A measurement standard that stands for Digital Process Capability Index, used to quantify the maturity of digital processes within an organization.