In its December 31, 2021 balance sheet, Crane should report a pension asset / liability of Pension liability of $721000 Pension liability of $537000 Pension asset of $850000 Pension asset of $129000
In its December 31, 2021 balance sheet, Crane should report a pension asset / liability of Pension liability of $721000 Pension liability of $537000 Pension asset of $850000 Pension asset of $129000
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
Problem 4E
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Question
Crane Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2021:
Projected benefit obligation | $ | 721000 | |
Accumulated benefit obligation | 537000 | ||
Fair value of plan assets | 850000 | ||
Service cost | 235000 | ||
Interest on projected benefit obligation | 23000 | ||
Amortization of prior service cost | 58000 | ||
Expected and actual return on plan assets | 79500 |
The market-related asset value equals the fair value of plan assets. No contributions have been made for 2021 pension cost. In its December 31, 2021 balance sheet, Crane should report a pension asset / liability of
Pension liability of $721000
Pension liability of $537000
Pension asset of $850000
Pension asset of $129000
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