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Clapboard Company contributes 3% of full-time employees salaries to a traditional 401(k) plan. The company made the complete contractual cash payment of $10,000 to the

Clapboard Company contributes 3% of full-time employees salaries to a traditional 401(k) plan. The company made the complete contractual cash payment of $10,000 to the plan in 2020. The company expects to make contributions of $10,000 in 2021 and to make additional contributions to the plan totaling $100,000 over the next 8 years according to current employee contracts. The present value of the total payments is equal to $96,500.

What is the amount of the liability recognized on the companys year-end balance sheet dated December 31, 2020?

A. 0

B. 95500

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