The following pension plan information is for Farr Company at December 31, 2015. $\begin{array}{lr}
\text { Projected benefit obligation } & \$ 8,500,000 \
\text { Accumulated benefit obligation } & 7,500,000 \
\text { Plan assets (at fair value) } & 6,150,000 \
\text { Accumulated OCl (PSC) } & 540,000 \
\text { Pension expense for 2015 } & 3,000,000 \
\text { Contribution for 2015 } & 2,400,000
\end{array}$ The amount to be reported as the liability for pensions on the December 31, 2015 balance sheet is

Question

Quizplus · Accepted Answer

The liability for pensions on the December 31, 2015 balance sheet is the projected benefit obligation minus the plan assets. The projected benefit obligation is $8,500,000 and the plan assets are $6,150,000, so the liability is $8,500,000 - $6,150,000 = $2,350,000.

The Following Pension Plan Information Is for Farr Company at December