the beginning of 2014, Moony, Inc. has a cumulative unrecognized loss of $50,000 in its pension plan. The estimated remaining service period of active employees is 12 years for both years.
$\begin{array}{llr}&2014&2015\
\text { Beginning plan asset value } & \$ 335,000 & \$ 350,000 \
\text { Beginning projected benefit obligation } & 325,000 & 385,000 \
\text { Current year gain or (loss) } & (37,500) & 25,000
\end{array}$
-The amortization of accumulated unrecognized losses for 2014 is

Question

Quizplus · Accepted Answer

The amortization of accumulated unrecognized losses for 2014 is calculated by dividing the cumulative unrecognized loss at the beginning of 2014 ($50,000) by the estimated remaining service period of active employees (12 years), which equals $4,166.67. However, since the question asks for the closest value, $1,375 is not correct, and the correct approach to find the closest provided option based on standard pension accounting principles would actually result in recognizing that none of the provided options directly match the calculated amortization. Given the context and the options, it seems there might have been a misunderstanding in the calculation explanation. The correct method involves dividing the cumulative unrecognized loss by the remaining service period, but without the exact match in the options, an error in the explanation was made. The correct answer should reflect the standard method for amortizing unrecognized pension losses.

The Beginning of 2014, Moony, Inc -The Amortization of Accumulated Unrecognized Losses for 2014 Is A)$0

The Beginning of 2014, Moony, Inc -The Amortization of Accumulated Unrecognized Losses for 2014 Is
A)$0