December 31, 2015

Assets and obligations

Plan assets (at fair value) $400,000

Accumulated benefit obligation 740,000

Projected benefit obligation 800,000

Other Items

Pension asset / liability, January 1, 2015 20,000

Contributions 240,000

Accumulated other comprehensive loss 335,800

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. $400,000

b. $60,000

c. $740,000

d. $800,000