Chanelle Company reports the following pension information for 2012: Pension-related interest cost for the year . .

Question:

Chanelle Company reports the following pension information for 2012:
Pension-related interest cost for the year . . . . . . . . . . . . . . . . . . . . . . . $ 65,000
Pension fund assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895,000
Pension obligation liability, end of year . . . . . . . . . . . . . . . . . . . . . . . . 930,000
Pension service cost for the year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Return on pension fund assets for the year . . . . . . . . . . . . . . . . . . . . . 115,000
1. What pension amount would Chanelle report on its as of the end of the year?
2. Compute the amount to be reported on the income statement as pension expense for the year.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...