Johnson, Inc. sponsors a defined-benefit pension plan. The following balance sheet data relates to the plan on December 31, 2013: Plan assets (at fair value), $1,000,000; Accumulated benefit obligation, $1,450,000; Projected benefit obligation, $1,750,000. Contributions of $115,000 were made to the plan during the year. What amount should Johnson report as its pension liability on its balance sheet as of December 31, 2013? a) $635,000 b) $750,000 c) $1,450,000 d) $1,750,000

Johnson, Inc. sponsors a defined-benefit pension plan. The following balance sheet data relates to the plan on December 31, 2013: Plan assets (at fair value), $1,000,000; Accumulated benefit obligation, $1,450,000; Projected benefit obligation, $1,750,000. Contributions of $115,000 were made to the plan during the year. What amount should Johnson report as its pension liability on its balance sheet as of December 31, 2013? a) $635,000 b) $750,000 c) $1,450,000 d) $1,750,000

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

Problem 3MC

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