Final answer:
The question doesn't provide sufficient data to calculate Waters Company's pension asset/liability. Additional info such as the pension obligation is needed to determine whether there's a net asset or liability.
Step-by-step explanation:
The pension asset/liability that should be reported by Waters Company as of December 31, 2013, cannot be determined solely with the future value of plan assets of $3,700,000.00. To report the correct pension asset/liability, additional information is required such as the pension obligation. This obligation typically represents the present value of the expected future payments to be made by the firm.
IF waters company had mentioned pension obligation details, one would subtract this amount from the fair value of plan assets to determine if there's a net asset or liability. Given the following information of a different scenario with assets and liabilities, if we had a total of assets (reserves of 30, bonds of 50, and loans of 50) and liabilities (deposits of 300 and equity of 30), the net value would be calculated by subtracting the liabilities from the assets to assess financial health.