Rossi Company has a defined-benefit plan. At the end of 2015, it has determined the following information related to its pension plan: $$\begin{array} { l r }
\text { Projected benefit obligation } & \$ 730,000 \
\text { Accumulated benefit obligation } & 660,000 \
\text { Fair value of pension plan assets } & 610,000
\end{array}$$ The amount of pension liability that is reported in Rossi's balance sheet at the end of 2015 is

Question

Rossi Company has a defined-benefit plan. At the end of 2015, it has determined the following information related to its pension plan: $$\begin{array} { l r } 
\text { Projected benefit obligation } & \$ 730,000 \
\text { Accumulated benefit obligation } & 660,000 \
\text { Fair value of pension plan assets } & 610,000
\end{array}$$ The amount of pension liability that is reported in Rossi's balance sheet at the end of 2015 is

Quizplus · Accepted Answer

The pension liability reported on the balance sheet is the difference between the projected benefit obligation and the fair value of the pension plan assets, which is $730,000 - $610,000 = $120,000.

Rossi Company Has a Defined-Benefit Plan The Amount of Pension Liability That Is Reported in Rossi's