Question
On January 1, 2017, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 2017, East incurred
On January 1, 2017, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 2017, East incurred service cost of $150,000 and amortized $12,000 of prior service cost. On December 31, 2017, East contributed $160,000 to the pension plan. East assumes a 6% discount rate and 5% expected rate of return.
Required:
At December 31, 2017, what amounts should East report as a pension asset (liability) and AOCI on its balance sheet? (A net pension liability should be indicated with by minus sign.)
The AOCI is not 48,600. I keep getting this answer but it is incorrect.
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