Montoya Company has available the subsequent information about its defined benefit pension plan for the year ended 31st December,2011.
Service Cost for 2011 $ 25,000
Accumulated benefit obligation 683,000
Plan assets at fair value 630,000
Accumulated OCI(Psc) 300,000
Vested Benefit ObligATION 505,000
Market Related Asset Value 725,000
Projected benefit obligation 865,000
Accumulated OCI net gain 90,000
Interest on projected benefit obligation 64,000
a. Determine the pension liability/ asset to be recorded at 31st December, 2011.
b. Determine the 2012 amortization of the net gain. The average residual service life of employee is 10 years.