Use the following information for questions 88 and 89.
The following information relates to Jackson, Inc.:
-The amount reported as the liability for pensions on the December 31, 2014 balance sheet is

Question

Use the following information for questions 88 and 89.
The following information relates to Jackson, Inc.: 
-The amount reported as the liability for pensions on the December 31, 2014 balance sheet is

Quizplus · Accepted Answer

The liability for pensions on the balance sheet is calculated as the present value of the defined benefit obligation minus the fair value of plan assets. If the information provided indicates that the defined benefit obligation exceeds the plan assets by $260,000, then this amount ($260,000) would be reported as the pension liability.

Use the Following Information for Questions 88 and 89