A prepaid pension asset will be created during a particular time period when a company reports pension expense of $219,200 and pension funding of $235,000.

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A prepaid pension asset is created when a company funds more towards the pension plan than the pension expense recognized in its financial statements. In this case, since the pension funding of $235,000 exceeds the pension expense of $219,200, the difference ($15,800) is recognized as a prepaid pension asset.

A Prepaid Pension Asset Will Be Created During a Particular