A company reported $350,000 of pension expense in its income statement. The balance sheet showed that the pension liability increased by $20,000 over the year. How much cash was paid to the pension trustee during the period?

Question

Quizplus · Accepted Answer

The cash paid to the pension trustee is the pension expense minus the increase in pension liability: $350,000 - $20,000 = $330,000.

A Company Reported $350,000 of Pension Expense in Its Income