Question

Premier Sports Inc has a beginning PBO balance of​ $628,000 and a beginning market-related value of plan assets of​ $560,000. The net actuarial gain at the beginning of the period is​ $87,500 and the average employee base has a remaining service life of 20 years. What is the required amortization of actuarial gains or losses for the current​ year?

a. 24,700

b. 1,235

c. 3,140

d. 4,375

Answer 1

Correct answer is D.

$4375

Step-by-step explanation:

Amortization of actuarial gain or losses = Net actuarial gain/remaining service life

= 87500/20

Amortization of actuarial gain = $4375