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coldgirl [10]
3 years ago
12

Lerchman Corp sponsors a defined-benefit pension plan for its employees. The company's actuary has provided the following inform

ation for the year ended December 31, 2022:
Projected benefit obligation $730,000
Fair value of plan assets 860,000
Service cost 240,000
Interest on projected benefit obligation 24,000
Amortization of prior service cost 60,000
Expected and actual return on plan assets 82,500

The plan paid benefits of $150,000. The market-related asset value equals the fair value of plan assets. No contributions have been made for 2022 pension cost. In its December 31, 2022 balance sheet, Lerchman should report a pension asset / liability of

a. Pension liability of $730,000
b. Pension liability of $545,000
c. Pension asset of $130,000
d. Pension asset of $860,000
Business
1 answer:
alexandr1967 [171]3 years ago
4 0

Answer:

c. Pension asset of $130,000

Explanation:

Calculation for what Lerchman should report as pension asset / liability in its December 31, 2022 balance sheet

Using this formula

Balance sheet Pension Asset = Fair value of plan assets 12/31/22- Projected benefit obligation 12/31/22

Let plug in the formula

Balance sheet Pension Asset= $860,000 - $730,000

Balance sheet Pension Asset = $130,000

Therefore In its December 31, 2022 balance sheet, Lerchman should report a pension asset of $130,000

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$17,820,000

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2 years ago
The primary purpose of the legal reserve requirement is to:
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Which of the following is a correct statement? Multiple Choice Writing off an uncollectible account under the allowance method d
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Estimating un-collectible accounts expense improves the matching of revenues and expenses.

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Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the
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6 0
3 years ago
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