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