What is the corridor limit for fiscal 2014? $$\begin{array} { | l | r | r | }
\hline \text { Balance at Dec } 31 & \text { Fiscal 2013 } & \text { Fiscal 2014 } \
\hline \text { Pension assets } & 5,000,000 & 3,000,000 \
\hline \text { Pension obligation } & 3,200,000 & 3,500,000 \
\hline \text { Unamortized actuarial gains } & 210,000 & 300,000 \
\hline
\end{array}$$

Question

What is the corridor limit for fiscal 2014? $$\begin{array} { | l | r | r | } 
\hline \text { Balance at Dec } 31 & \text { Fiscal 2013 } & \text { Fiscal 2014 } \
\hline \text { Pension assets } & 5,000,000 & 3,000,000 \
\hline \text { Pension obligation } & 3,200,000 & 3,500,000 \
\hline \text { Unamortized actuarial gains } & 210,000 & 300,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The corridor limit is 10% of the greater of the pension asset or the pension obligation. In this case, the greater of the two is the pension obligation of $3,500,000. 10% of $3,500,000 is $350,000. However, the unamortized actuarial gain of $300,000 is already within the corridor, so the corridor limit for fiscal 2014 is $300,000.

What Is the Corridor Limit for Fiscal 2014 A)$50,000 B)$300,000 C)$350,000 D)$500,000

What Is the Corridor Limit for Fiscal 2014 A)$50,000
B)$300,000
C)$350,000
D)$500,000