Question

The Accumulated Other Comprehensive Income (G/L) account is amortized only if it exceeds 10 percent of the larger of the beginning balances of the projected benefit obligation or the market-related plan assets value. a)true b)false

Answer 1

The Accumulated Other Comprehensive Income (G/L) account is amortized only if it exceeds 10 percent of the larger of the beginning balances of the projected benefit obligation or the market-related plan assets value.

Step-by-step explanation:

The statement is true. The Accumulated Other Comprehensive Income (G/L) account is amortized only if it exceeds 10 percent of the larger of the beginning balances of the projected benefit obligation or the market-related plan assets value. In other words, if the Accumulated Other Comprehensive Income (G/L) account is less than or equal to 10 percent of the larger of the two balances, it is not amortized. However, if it exceeds 10 percent, it is amortized over a specified period of time.