Question
Huggins Company has the following information at December 31, 2021 related to its pension plan: Accumulated benefit obligation $5,000,000 Projected benefit obligation 4,000,000 Plan assets
Huggins Company has the following information at December 31, 2021 related to its pension plan:
Accumulated benefit obligation $5,000,000
Projected benefit obligation 4,000,000
Plan assets (fair value) 5,440,000
Accumulated OCI (PSC) 375,000
The amount of pension asset / liability Huggins Company would recognize at December 31, 2021 is
|
| Pension liability of $375,000. | |
|
| Pension asset of $1,440,000. | |
|
| Pension liability of $1,000,000. | |
|
| Pension asset of $440,000. |
Please explain in detail! Thank you. The answer I chose was Pension asset of $440,000. BUT it was wrong!
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Corporate Finance A Practical Approach
Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan
2nd Edition
9781118217290
