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nexus9112 [7]
3 years ago
6

JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $75 million, $65 million, and

$46 million, respectively, at the end of the year. a. What, if any, pension liability or pension asset must be reported in the balance sheet
Business
1 answer:
meriva3 years ago
8 0

Answer: Net Pension liability of $29 million

Explanation:

A net pension liability will be reported when the obligations of the employer which is the Projected benefit obligation, exceeds the Plan assets because the company has less resources than required to satisfy its obligations.

A net pension asset will be when the Projected Benefit Obligation (PBO) is less than the Plan assets.

In this case, there will be a Net pension liability of;

= PBO - Plan assets

= 75 - 46

= $29 million

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Answer:

d. A loan received will reduce capital

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North Dakota Corporation began operations in January 2017 and purchased a machine for $15,000. North Dakota uses straight-line d
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3 years ago
On January 1, Year 1, Missouri Co. purchased a truck that cost $35,000. The truck had an expected useful life of 10 years and a
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Answer:

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