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What Was the Balance of the Net Pension Asset

Question 84

Multiple Choice

What was the balance of the net pension asset / liability reported in the balance sheet at the end of the previous year?


A) Net pension asset of $250.
B) Net pension asset of $442.
C) Net pension liability of $250.
D) Net pension liability of $442.Service cost (from pension expense column) = $62 Interest cost = $(574) + 500 + 62 (from pension expense column) + $25 43 = $(30) = $30 in pension expense column
Expected return on assets (given) = $(23)
Gain on assets (given) = $2
Loss on PBO (given) = $(25)
Cash contributions (given) = $56
Beginning net pension liability = $(286) + 62 + 30 23 2 +25 56 = $(250)

Correct Answer:

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