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The following pension-related values are determined on December 31, 2015 for Donuts, Corp. Projected benefit obligation $100,000 Accumulated benefit obligation 80,000 Plan assets at fair
The following pension-related values are determined on December 31, 2015 for Donuts, Corp.
Projected benefit obligation | $100,000 |
Accumulated benefit obligation | 80,000 |
Plan assets at fair value | 90,000 |
Accumulated OCI Prior service cost (dr.) | 12,000 |
Required:
a. What would be the amount of the net pension asset or liability that would be reported in Donuts 2015 financial statements? Explain briefly.
b. Briefly explain what each of the four items represents for Donuts, Corp. AND where each item would be reflected in the financial statements.
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