Explore BrainMass

Explore BrainMass

    Shin Corporation had a projected benefit obligation of ...

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    (BE20-7) Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at January 1, 2010. Shin also had a net actuarial loss of $465,000 in accumulated OCI at January 1, 2010.
    The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of the actuarial loss.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:03 am ad1c9bdddf
    https://brainmass.com/business/accounting/shin-corporation-projected-benefit-obligation-495633

    Solution Preview

    Sure, here's how we would calculate this:

    Net actuarial loss in accumulated OCI at 01-01-2010: $465,000
    We then have to apply the corridor rule. The corridor rule states that the ...

    Solution Summary

    (BE20-7) Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at January 1, 2010. Shin also had a net actuarial loss of $465,000 in accumulated OCI at January 1, 2010.
    The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of the actuarial loss.

    $2.19

    ADVERTISEMENT