Intermediate Accounting II

8% The following 2 questions are based on the following information: On January 1, 20x3 the fair value of the company's pension fund was $630,000 while its projected benefit obligation was $610,000. Following is a list of items pertaining to 20x3: Actual rate of return 12% Prior service costs from 20x2 unamortized $75,000 Expected rate of return Net gains from prior years unamortized $84,000 Discount rate 10% Actuarial gains $43,000 Current service costs $50,000 Average remaining years of service 5 No contributions were made towards the pension fund nor were benefits paid during 20x3. 2) How much should be reported on the December 20x3 balance sheet for pension asset or liability? $47,400 liability B $27,600 asset $15,000 asset D $58,400 liability 3) In calculating pension cost for December 20x3, how much of amortized gains should be included? $84,000 $21,000 $4,200 $16,800 B D