At the beginning of the year, Lancaster Company's actuaries projected an expected rate of return on plan assets of $60,000. The actual rate of return was $48,000. What entry is made to account for the difference this year? OA Debit Credit Other comprehensive income 12,000 (equity) Pension expense 12,000 OB. No entry is needed; the expected rate of return is only an estimate. 00 O D. Pension expense Other comprehensive income (equity) Net pension asset Debit Credit 12,000 12,000 Debit Credit 12,000 Penson expense 12,000 E Debit Credit Pension expense 12,000 Net penson liability 12,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
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Hi, Can someone please help me understand this question please? Options C and E are NOT correct. Please help me out. thank you

At the beginning of the year, Lancaster Company's actuaries projected an expected rate of return on plan assets of $60,000. The actual rate of return was $48,000. What entry is made to
account for the difference this year?
OA
Debit
Credit
Other comprehensive income
12,000
(equity)
Pension expense
12,000
OB. No entry is needed; the expected rate of return is only an estimate.
00
O D.
Pension expense
Other comprehensive income
(equity)
Net pension asset
Debit
Credit
12,000
12,000
Debit
Credit
12,000
Penson expense
12,000
E
Debit
Credit
Pension expense
12,000
Net penson liability
12,000
Transcribed Image Text:At the beginning of the year, Lancaster Company's actuaries projected an expected rate of return on plan assets of $60,000. The actual rate of return was $48,000. What entry is made to account for the difference this year? OA Debit Credit Other comprehensive income 12,000 (equity) Pension expense 12,000 OB. No entry is needed; the expected rate of return is only an estimate. 00 O D. Pension expense Other comprehensive income (equity) Net pension asset Debit Credit 12,000 12,000 Debit Credit 12,000 Penson expense 12,000 E Debit Credit Pension expense 12,000 Net penson liability 12,000
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