Montoya Company has available the following information about its defined-benefit pension plan for the year ending December 31, 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
Instructions:
(a) Calculate the pension asset / liability to be recorded at December 31, 2011.
(b) Calculate the 2012 amortization of the net gain. The average remaining service life of employees is 10 years.