At the beginning of the current year, Bridges Corporation has a net gain—Accumulated Other Comprehensive Net Income of $80,000,000. The Projected Benefit Obligation and the plan assets are $500,000,000 and $650,000,000 respectively. The average remaining service period for the employees to receive benefits is 15 years. What is the amount of amortization to pension expense for the year?
A) $1,000,000
B) $1,500,000
C) $2,000,000
D) $8,000,000
Answer: A
Explanation: A) $[(80,000,000 - (650,000,000) × 10%)) / 15] = $1,000,000
Business
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