The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC). ($ in millions) Debit(Credit)PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/ Asset Beginning balance (740)      32   (94)           Service cost                 66        Interest cost                 37        Expected return on assets     72                    Gain/loss on assets             (4)           Amortization of:                          Prior service cost         (10)               Net gain/loss             5            Loss on PBO (12)                       Contributions to fund                     (49)   Retiree benefits paid     (69)                   Ending balance     745       (85)             What was the net pension asset/liability reported in the balance sheet at the end of the year?   Multiple Choice Net pension liability of $41 million. Net pension asset of $58 million. Net pension liability of $58 million. Net pension asset of $41 million.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC).

($ in millions)
Debit(Credit)PBO Plan Assets Prior Service Cost Net
(Gain)/Loss Pension Expense Cash Net Pension (Liability)/
Asset Beginning balance (740)      32   (94)           Service cost                 66        Interest cost                 37        Expected return on assets     72                    Gain/loss on assets             (4)           Amortization of:                          Prior service cost         (10)               Net gain/loss             5            Loss on PBO (12)                       Contributions to fund                     (49)   Retiree benefits paid     (69)                   Ending balance     745       (85)            


What was the net pension asset/liability reported in the balance sheet at the end of the year?

 

Multiple Choice

Net pension liability of $41 million.

Net pension asset of $58 million.

Net pension liability of $58 million.

Net pension asset of $41 million. 

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