E20-16B (Amortization of Accumulated OCI (G/L) Corridor Approach, Pension Expense Computation) The actuary for the pension plan of Regina Company calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2014 $ (660,000) 2015

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E20-16B (Amortization of Accumulated OCI (G/L) Corridor Approach, Pension Expense Computation) The actuary for the pension plan of Regina Company calculated the following net gains and losses.

Incurred

  during                         the Year (Gain) or Loss

2014                                       $ (660,000)

2015                                           250,000

2016                                        1,000,000

2017                                           400,000

Other information about the company’s pension obligation and plan assets is as follows.

                                      Projected Benefit                           Plan Assets

As of January 1                Obligation                 (market-related asset value)

2014                                   $4,000,000                              $3,400,000

2015                                     4,500,000                                 3,640,000

2016                                    4,900,000                                  3,900,000

2017                                    5,250,000                                   4,360,000

Regina Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service-years for all participating employees are 3,500. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2014. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.

Instructions

(Round to the nearest dollar.)

Prepare a schedule which reflects the minimum amount of Accumulated OCI (G/L) amortized as a component

of net periodic pension expense for each of the years 2014, 2015, 2016, and 2017. Apply the “corridor” approach in determining the amount to be amortized each year.

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