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The following items appear on Brueggen Company\'s financial statements 1. Under

ID: 2469747 • Letter: T

Question

The following items appear on Brueggen Company's financial statements

1. Under the caption Assets:

Pension asset/liability

2. Under the caption Liabilities:

Pension asset/liability

3. Under the caption Stockholders Equity:

Prior service cost as a component of accumulated other Comprehensive Income.

4. On the income statement:

Pension expense.

Instructions:

Explain the significance of each of the items above on corporate financial statements. (Note: All items set forth above are not necessarily to be found on the statements of a single company.)

Explanation / Answer

Answer :- 1 under the caption asset as shown in assest side

2 under the caption liabilities as shown in liabilities side.

3. Prior service cost as shown in income statement of debit side.

4.pension expenses as shown in income statement in debit side.