The following information for Blossom Enterprises is given below: December 31, 2021 Assets and obligations Plan assets (at fair value) $840000 Accumulated benefit obligation 1360000 Projected benefit obligation 1450000 Other Items Pension asset / liability, January 1, 2021 40000 Contributions 460000 Accumulated other comprehensive loss 753700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.What is the amount that Blossom Enterprises should report as its pension liability on its balance sheet as of December 31, 2021?$1360000$90000$1450000$610000

Given the following information: Plan assets (at fair value): $840,000 Accumulated benefit…

Answered: The following information for Blossom…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information for Blossom Enterprises is given below:

		December 31, 2021
Assets and obligations
	Plan assets (at fair value)		$840000
	Accumulated benefit obligation		1360000
	Projected benefit obligation		1450000
Other Items
	Pension asset / liability, January 1, 2021		40000
	Contributions		460000
	Accumulated other comprehensive loss		753700

There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.

What is the amount that Blossom Enterprises should report as its pension liability on its balance sheet as of December 31, 2021?

$1360000

$90000

$1450000

$610000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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