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The Corridor Approach

Question 33

Multiple Choice

The corridor approach


A) Is used to determine how much interest to add to the service cost and amortization of prior service in order to calculate pension expense for the period.
B) Is used to determine the minimum amount of accumulated unamortized net gains or losses that must be amortized during the accounting period.
C) Is used to determine the amount of prior service cost to expense each accounting period.
D) Is use to determine the pension plan's funded status.

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