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24 November, 03:24

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

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  1. 24 November, 05:31
    0
    Correct answer is D.

    $4375

    Explanation:

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

    = 87500/20

    Amortization of actuarial gain = $4375
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