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Chapter 20: Question 6BE (page 1162)

At December 31, 2017, Besler Corporation had a projected benefit obligation of \(560,000, plan assets of \)322,000, and prior service cost of $127,000 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017.

Short Answer

Expert verified

Comprehensive income is the type of income an organization earns from its sale of financial securitiesdue to its price changesin the market. It is represented under the organization's financial statements.

Step by step solution

01

Given the amounts:

Particulars

Amount

Projected benefit obligation

$560,000

Prior service cost

$127,000

Plan assets

$322,000

02

Computation of pension asset/liability at December 31, 2017

PensionLiability=-Projectedbenefitobligation+Planassetsatfairvalue=$560,000+$322,000=-$238,000

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