Given the following data for Cooper Enterprises: December 31, 2015 Assets and ob

Question

Given the following data for Cooper Enterprises:
December 31, 2015
Assets and obligations
Plan assets (at fair value) $200,000
Accumulated benefit obligation 370,000
Projected benefit obligation 400,000
Other Items
Pension asset / liability, January 1, 2015 10,000
Contributions 120,000
Accumulated other comprehensive loss 167,900

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

$200,000

b

$30,000

c

$370,000

d

$400,000

a

$200,000

b

$30,000

c

$370,000

d

$400,000

Explanation / Answer

Answer.a. $200,000 Pension Liability = $400,000 (Projected benefit obligation) - 200,000 (plan assets) Pension Liability = $200,000

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