Below is the Pension Footnote from Goodyear Tire & Rubber Company for the year e
ID: 2500013 • Letter: B
Question
Below is the Pension Footnote from Goodyear Tire & Rubber Company for the year ended December 31, 2014 and 2013:
U.S.
Non-U.S.
2014
2013
2014
2013
Projected benefit obligation
$4,087
$4,101
$1,112
$2,106
Fair value of plan assets
$5,822
$2,869
$384
$1,375
1) What amount of asset or liability will Goodyear reflect on its balance sheet as of December 31, 2013? Show and label your computations.
2) What amount of asset or liability, if any, will Goodyear reflect on its balance sheet as of December 31, 2014? Show and label your computations.
U.S.
Non-U.S.
2014
2013
2014
2013
Projected benefit obligation
$4,087
$4,101
$1,112
$2,106
Fair value of plan assets
$5,822
$2,869
$384
$1,375
Explanation / Answer
December 31,2013
U.S Non-US
Projected benefit obligation $4101 $2106
Fair value of Plan Asset $2869 $1375
It is a liability if the pension obligation exceeded the market value of the plan assets; it is an asset if the market value of the pension assets exceeded the pension obligation.
Laibility $1232 $731
Toat liability $1963
December 31, 2014
U.S Non-US
Projected benefit obligation $4087 $1112
Fair value of Plan Asset $5822 $384
Assets $1735
Liability $728
Asset= $(1735-728)=$1007 if want to show the net effect.
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