Question
The following information for John Enterprises is given below: December 31, 2015 Assets and obligations Plan assets (at fair value) $400,000 Accumulated benefit obligation 740,000
The following information for John Enterprises is given below: 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 (Cr.) 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. 1.What is the pension expense that John Enterprises should report for 2015?
2.What is the amount that John Enterprises should report as its pension liability on its balance sheet as of December 31, 2015?
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