Why is the prior service cost of $127,000 not included in the calculation? BE20-6 At December 31, 2012, Besler Corporation had a projected benefit obligation of $560,000, plan assets of $322,000, and prior service cost of $127,000 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2012. (pg.1254-1255) Kieso. Intermediate Accounting, 14th Edition. John Wiley & Sons. Answer: Project benefit obligation.................................................................. $(560,000) Plan assets at fair value..................................................................... 322,000 Pension liability.................................................................................... $(238,000)