Records for the Carp Corporation's Defined-Benefit Pension Plan Show a Net

Records for the Carp Corporation's defined-benefit pension plan show a net unrecognized loss at December 31, 2010, of $30,000, after recording the pension expense for 2010. The average expected service period of the company's employees is 10 years. The actuary notifies Carp's management that an actuarial gain of $4,000 is determined at January 1, 2011. Actual return for 2011 is $2,000, and expected return is $3,000. The following information also is available for the 2011:

The minimum amortization of unrecognized loss increases 2011 pension expense by what amount?

A) $2,400
B) $1,700
C) $2,100
D) $2,600

Correct Answer:

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