Foster Corporation received the following report from its actuary at the end of
ID: 2467087 • Letter: F
Question
Foster Corporation received the following report from its actuary at the end of the year:
December 31, 2014 December 31, 2015
Projected benefit obligation $2,000,000 $2,200,000
Accumulated benefit obligation 1,300,000 1,480,000
Fair value of pension plan assets 1,380,000 1,440,000
The amount reported as the pension liability at December 31, 2015 is
A. $720,000 B. $1,480,000 C. $760,000 D. $2,200,000
Explanation / Answer
C.$760,000
(Projected benefit obligation ending $2,200,000 - Fair value of pension plan assets 1,440,000 = $760,000.)