Need answer for Question 18. if you can answer question 3 that will be helpful t
ID: 2535324 • Letter: N
Question
Need answer for Question 18. if you can answer question 3 that will be helpful too.
18) The following information was provided for a generation gllan for a publicly traded company for the current year:
Accumulated benefits obligation, 1/1$4,300
Fair value of plan assets, 12/31 3,450
Projected benefits obligation, 1/17 4,200
Service cost during that year 600
Interest cost during that year 900
What is the amount of the Pension liability that should be shown on the current year’s December 31 Balance sheet?
A $1,400
B $2,250
C $850
D $5,700
3) The decision to not elect the fair value option (FVO) for available-for-sale securities
A. Results in recognition of unrealized gains and losses in earnings of a business entity.
B. Requires entities to measure eligible items using the equity method
C. Requires postponing recognition of unrealized gains or losses until the investment is sold
D. Results in recognition of unrealized gains and losses in stockholders’ equity.
Explanation / Answer
17. Option B
Pension liability
=Projected benefits obligation +service cost+interest cost - fair value of plan assets
=4200+600+900-3450
= 2,250
3)Option B
Requires entities to measure eligible items using equity method.
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