Given the following information, compute December 31, 2010 projected benefit obligation (PBO) and fair market value (FMV)

Question:

Given the following information, compute December 31, 2010 projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company.

Prior service cost granted in a 2010 plan amendment . $110,000
Interest on PBO .................. 70,000
Actual return on plan assets ............. 100,000
Service cost ................... 80,000
Contribution sent to plan trustee .......... 60,000
Benefit payments to retirees ............ 20,000
Liability loss (gain) ............... (30,000)
FMV of plan assets, January 1, 2010 ........ 750,000
PBO, January 1, 2010 .............. 800,000

What amount of asset or liability will be reported on the at December 31, 2010?

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...