Mega Corporation sponsors a defined-benefit plan for its employees. The beginning balance of the unamortized net actuarial gain is $250,000. The plan's custodian reports that the beginning balance of the PBO is $1,450,000 and the beginning balance of the market-related value of the plan assets is $1,100,000. The average remaining service life of Mega's pension plan eligible employees is 10 years.

Compute the current year's amortization required by the corridor method and prepare the journal entry.

Question

Compute the current year's amortization required by the corridor method and prepare the journal entry.

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The Answer of Mega Corporation sponsors a defined-benefit plan for its employees. The beginning balance of the unamortized net actuarial gain is $250,000. The plan's custodian reports that the beginning balance of the PBO is $1,450,000 and the beginning balance of the market-related value of the plan assets is $1,100,000. The average remaining service life of Mega's pension plan eligible employees is 10 years.

Compute the current year's amortization required by the corridor method and prepare the journal entry.

Mega Corporation Sponsors a Defined-Benefit Plan for Its Employees