Webb Co., a publicly traded company, implemented a defined benefit pension plan for its employees on January
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Webb Co., a publicly traded company, implemented a defined benefit pension plan for its employees on January 1, 2003. During 2003 and 2004, Webbs contributions fully funded the plan. The following data are provided for 2006 and 2005:
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| 2006 Estimated | 2005 Actual |
Projected benefit obligation, December 31 | $750,000 | $700,000 |
Accumulated benefit obligation, December 31 | 520,000 | 500,000 |
Plan assets at fair value, December 31 | 675,000 | 600,000 |
Projected benefit obligation in excess of plan assets | 75,000 | 100,000 |
Pension expense | 90,000 | 75,000 |
Employers contribution | 90,000 | 50,000 |
What amount should Webb report as a pension liability in its December 31, 2006 balance sheet?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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