December 31, 2015 Assets and obligations Plan assets (at fair value) $400,000 Ac

Question

                                                                                                                                                         December 31, 2015

Assets and obligations

            Plan assets (at fair value)                                                                                                                $400,000

            Accumulated benefit obligation                                                                                                     740,000

            Projected benefit obligation                                                                                                            800,000

Other Items

            Pension asset / liability, January 1, 2015                                                                                        20,000

            Contributions                                                                                                                                         240,000

            Accumulated other comprehensive loss                                                                                    335,800

There were no actuarial gains or losses at January 1, 2015. The average remaining service life of employees is 10 years.

* What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2015?

a.   $400,000

b.   $60,000

c.   $740,000

d.   $800,000

Explanation / Answer

December 31, 2015 Assets and obligations Plan assets (at fair value) $400,000 Ac

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