Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected benefit obligation Plan Assets Value
2011 $2,000,000 $1,900,000
2012 2,400,000 2,500,000
2013 2,950,000 2,600,000
2014 3,600,000 3,000,000
The average remaining service life per employee in 2011 and 2012 is 10 years and in 2013 and 2014 is 12 years. The net gain or loss that occurred during each year is as follows: 2011, $280,000 loss; 2012, $90,000 loss; 2013, $11,000 loss; and 2014, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Corridor and Minimum Loss Amortization
Year Projected Benefit Plan 10% Accumulated Minimum Amortization
Obligation (a) Assets Corridor OCI (G/L) (a) of Loss
2011 $2,000,000 $1,900,000 $200,000 $ 0 $0
2012 2,400,000 2,500,000 250,000 280,000 3,000(b)
2013 2,950,000 2,600,000 295,000 367,000(c) 6,000(d)
2014 3,600,000 3,000,000 360,000 372,000(e) 1,000(f)
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.