Presented below is information related to Blossom Manufacturing Company as of De

Question

Presented below is information related to Blossom Manufacturing Company as of December 31, 2018:
Projected benefit obligation $ 2200000 Accumulated OCI -net gain 700000 Accumulated OCI (PSC) 910000
The amount for the prior service cost is related to an increase in benefits. The fair value of the pension plan assets is $1690000.

The pension asset / liability reported on the balance sheet at December 31, 2018 is

Pension liability of $3110000. Pension liability of $1690000. Pension liability of $2200000. Pension liability of $510000.

Explanation / Answer

Pension asset / liability = Fair value of the pension plan assets-Projected benefit obligation = 1690000-2200000 = 510000 Pension liability Option 4 is correct

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