Use the following information for questions.
The following information relates to Jackson, Inc.:

-The amount reported as the liability for pensions on the December 31, 2011 statement of financial position is

Question

Use the following information for questions.
The following information relates to Jackson, Inc.:
 
-The amount reported as the liability for pensions on the December 31, 2011 statement of financial position is

Quizplus · Accepted Answer

The information provided states that the liability for pensions is being reported. This means that there is an obligation to make future payments to pensioners. Option A (no liability) and Option B ($60,000) are too low to be a liability for a company such as Jackson Inc. Option D ($520,000) is much too low to be the liability for pensions of a company such as Jackson Inc. Option C ($1,884,000) is the only reasonable option left, as it represents a large enough liability for a company such as Jackson Inc.

Use the Following Information for Questions