Given the following information, compute December 31, 2014, projected benefit obligation (PBO) and fair market value (FMV)

Question:

Given the following information, compute December 31, 2014, projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company.

Prior service cost granted in a 2014 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, 2014................................................750,000

PBO, January 1, 2014..................................................................800,000

What amount of asset or liability will be reported on the balance sheet at December 31, 2014?

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...