In: Accounting
ABC Corp. provides its employees with a defined benefit pension plan. The company's actuary has provided you with the following information as of December 31, 2020: PBO $ 1,200,000 Fair Value Plan Assets 1,650,000 Current Service Cost 480,000 Interest Cost 48,000 PSC amortization 120,000 Expected and actual return on assets 165,000 In the past, contributions made to the pension plan have been equal to the pension expense for the corresponding year. The company has not made any contribution in 2020. In the statement of financial position as of December 31, 2020, ABC must report
a. a net pension asset of $ 1,650,000
b. a net pension debt of $ 78,000
c. a net pension debt of $ 450,000
d. a net pension asset of $ 450,000
December 31,2020 | ||
PBO | $ 1,200,000 | |
Fair Value plan assets | $ 1,650,000 | |
Net Pension asset | $ 450,000 | (1,650,000 - 1,200,000 ) |
Correct answer is option d. | ||