Hudson Company s actuary has provided the following

information concerning the #2593

Hudson Company’s actuary has provided the following information concerning the company’s
defined benefit pension plan at the end of 2016:Fair value of plan assets (1/1/2016) ........
$350,000Actual projected benefit obligation (1/1/2016) ..... 360,000Expected projected benefit
obligation (1/1/2016) ... 424,000Average remaining service life of employees .... 10 yearsThe
difference between the actual and expected projected benefit obligation first occurred in
2015.Required:1. Compute the amount of (lie gain or loss for Hudson’s pension plan at the
beginning of 2016, assuming that Hudson uses the corridor approach.2. Compute the amount of
(lie net gain or loss to include in Hudson’s pension expense for 2016. Indicate whether it is an
addition to or a subtraction from pension expense.3. If Hudson Company is using IFRS, how
would the gain or loss be treated?View Solution:
Hudson Company s actuary has provided the following information concerning the

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