Presented below is information related to Decker Manufacturing Company as of Dec

Question

Presented below is information related to Decker Manufacturing Company as of December 31, 2018: Projected benefit obligation $1,700,000 Accumulated OCI -net gain 600,000 Accumulated OCI (PSC) 810,000 The amount for the prior service cost is related to an increase in benefits. The fair value of the pension plan assets is $1,200,000. The pension asset / liability reported on the balance sheet at December 31, 2018 is

A) Pension liability of $500,000

B)Pension liability of $1,200,000

C) Pension liability of $1,700,000

D) Pension liability of $2,510,000

Explanation / Answer

Pension asset / liability = 1700000-1200000 = $500000 liability Option A Pension liability of $500,000 is correct

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