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To Compute the Amortization on the Cumulative Unrecognized Gains and Losses

Question 21

Multiple Choice

To compute the amortization on the cumulative unrecognized gains and losses for a pension plan,the corridor is computed as 10% of the


A) average of the beginning balances of the plan assets and the projected benefit obligation.
B) higher of the beginning balances of the plan assets or the accumulated benefit obligation.
C) higher of the beginning market-related value of the plan assets or the projected benefit obligation.
D) lower of the beginning market-related value of the plan assets or the projected benefit obligation.

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