On January 1, 20X1, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 20X1, East incurred service cost of $150,000 and amortized $12,000 of prior service cost. On December 31, 20X1, East contributed $160,000 to the pension plan. East assumes a 6% discount rate and 5% expected rate of return. Required: At December 31, 20X1, what amounts should East report as a pension asset (liability) and AOCI on its balance sheet? (A net pension liability should be indicated with by minus sign.)
On January 1, 20X1, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 20X1, East incurred service cost of $150,000 and amortized $12,000 of prior service cost. On December 31, 20X1, East contributed $160,000 to the pension plan. East assumes a 6% discount rate and 5% expected rate of return. Required: At December 31, 20X1, what amounts should East report as a pension asset (liability) and AOCI on its balance sheet? (A net pension liability should be indicated with by minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20X1, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 20X1, East incurred service cost of $150,000 and amortized $12,000 of prior service cost. On December 31, 20X1, East contributed $160,000 to the pension plan. East assumes a 6% discount rate and 5% expected
Required:
At December 31, 20X1, what amounts should East report as a pension asset (liability) and AOCI on its
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