In 2020, the Rachel Company initiated a defined benefit pension plan. It recorded $240,000 as pension...
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In 2020, the Rachel Company initiated a defined benefit pension plan. It recorded $240,000 as pension expense and paid $280,000 to a funding agency. As a result, Rachel will report A) pension assets of $280,000 and pension liabilities of $240,000. B) an accrued liability of $50,000. C) service cost of $280,000 and unfunded prior service cost of $40,000. D) prepaid pension cost of $40,000. In 2020, the Rachel Company initiated a defined benefit pension plan. It recorded $240,000 as pension expense and paid $280,000 to a funding agency. As a result, Rachel will report A) pension assets of $280,000 and pension liabilities of $240,000. B) an accrued liability of $50,000. C) service cost of $280,000 and unfunded prior service cost of $40,000. D) prepaid pension cost of $40,000.
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Answer Option D prepaid pension cost of 40000 Note Total amount contribu... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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