Gorilla,Corp.implemented a defined-benefit pension plan for its employees on January 2,2012.The following data are provided for year 2012,as of December 31
What amount should Gorilla record as additional minimum pension liability at December 31,2012?
A) $0
B) $5,000
C) $20,000
D) $45,000

Question

Gorilla,Corp.implemented a defined-benefit pension plan for its employees on January 2,2012.The following data are provided for year 2012,as of December 31 
What amount should Gorilla record as additional minimum pension liability at December 31,2012?
A) $0 
B) $5,000 
C) $20,000 
D) $45,000

Quizplus · Accepted Answer

Current pension liability is $90,000 - $70,000 = $20,000
Need an additional $5,000