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).

Question

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The Answer of 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).

Odakota Canoes Has Had a Defined Benefit Pension Plan for Three