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
(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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