A company has a defined benefit pension plan with the following information:Projected benefit obligation: $500,000Fair...
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Accounting
A company has a defined benefit pension plan with the following information:
Projected benefit obligation: $500,000
Fair value of plan assets: $450,000
Annual pension expense: $60,000
Employer contributions: $40,000
Requirements:
(a) Calculate the funded status of the pension plan. (b) Prepare the journal entry for the annual pension expense. (c) Determine the amount of pension liability or asset. (d) Discuss the impact of pension accounting on financial statements.
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