1. The following information pertains to Kane Co.’s defined benefit pension plan:

Prepaid pension cost (net asset), January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000

Service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000

Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000

Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Amortization of unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,000

Employer contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

In its December 31, 2009, balance sheet, what amount should Kane report as accrued pension cost (net liability)?

(a) $45,000

(b) $49,000

(c) $67,000

(d) $87,000

2. An employer’s obligation for postretirement health benefits that are expected to be provided to or for an employee must be fully accrued by the date the:

(a) Employee is fully eligible for benefits.

(b) Employee retires.

(c) Benefits are utilized.

(d) Benefits are paid.

3. The following data relate to Nola Co.’s defined benefit pension plan as of December 31,

2009:

Unfunded accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000

Unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

Accrued pension cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

What amount should Nola report as excess of additional pension liability over unrecognized prior service cost in its statement of stockholders’ equity?

(a) $15,000

(b) $35,000

(c) $95,000

(d) $175,000