Question
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
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