Midland Company follows U.S. GAAP for its external financial reporting whereas Bailey Company follows IFRS for its external financial reporting. Both companies have defined-benefit pension plans. At December 31, 2015, prior to any adjusting entries, Midland Company's actuarial loss subject to amortization/recognition amounted to $55,000 and Bailey Company's actuarial loss subject to amortization/recognition amounted to $76,000. The remaining services lives of employees at both firms is estimated to be 10 years. What is the maximum amount of loss that could be recognized by each company in its income statement for the year ended December 31, 2015?

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The Answer of Midland Company follows U.S. GAAP for its external financial reporting whereas Bailey Company follows IFRS for its external financial reporting. Both companies have defined-benefit pension plans. At December 31, 2015, prior to any adjusting entries, Midland Company's actuarial loss subject to amortization/recognition amounted to $55,000 and Bailey Company's actuarial loss subject to amortization/recognition amounted to $76,000. The remaining services lives of employees at both firms is estimated to be 10 years. What is the maximum amount of loss that could be recognized by each company in its income statement for the year ended December 31, 2015?

Midland Company Follows U