On January 2, 2014, Loch Company established a defined benefit plan covering all employees and contributed $1,000,000

Question:

On January 2, 2014, Loch Company established a defined benefit plan covering all employees and contributed $1,000,000 to the plan. At December 31, 2014, Loch determined that the 2014 service and interest costs totaled $620,000. The expected and the actual rate of return on plan assets for 2014 was 10%. Loch’s pension expense has no other components.

Required:
What amount should Loch report in its December 31, 2014, as a pension asset (liability)?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...