John Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2015 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2015 is presented below: What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2015 pension expense and funding at December 31, 2015?

Question

John Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2015 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2015 is presented below:  What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2015 pension expense and funding at December 31, 2015?

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The Answer of John Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2015 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2015 is presented below:  What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2015 pension expense and funding at December 31, 2015?

John Company Adopted a Defined Benefit Pension Plan on January