Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Barrel Corporation had service and interest costs of $50,000 related to its defined benefit pension plan for the year ended December 31, Year 7. The

Barrel Corporation had service and interest costs of $50,000 related to its defined benefit pension plan for the year ended December 31, Year 7. The company's unrecognized prior service cost was $200,000 at December 31, year 6 and the average remaining service life of the companys employees was 20 years. Plan assets earned an expected and actual return of 10% year 7. The company made contributions to the plan of $25,000 and paid benefits of $30,000 during the year. The pension plan had assets with a fair value of $300,000 at December 31, year 6. The PBO was $400,000 at December 31, year 6 and $420,000 at December 31, year 7. What should barrel corporation report in accumulated other comprehensive income for this pension plan at December 31, year 7 under U.S. GAAP?

A. $190,000

B. $200,000

C. $50,000

D. $30,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gas And Mileage Log Book

Authors: TopStoxx Publishing

1st Edition

B08DDM8FVC, 979-8668873487

More Books

Students also viewed these Accounting questions

Question

5. Recognize your ability to repair and let go of painful conflict

Answered: 1 week ago