Question

The following information for Cooper Enterprises is given below: December 31, 2021Assets and obligations Plan assets (at fair value) $600,000 Accumulated benefit obligation 1,110,000 Projected benefit obligation 1,200,000Other Items Pension asset / liability, January 1, 2021 30,000 Contributions 360,000 Accumulated other comprehensive loss 503,700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years. What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021

Answer 1

$600,000

Step-by-step explanation:

Calculation to determine the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021

Using this formula

Pension liability = Projected benefit obligation - plant asset at fair value

Let plug in the formula

Pension liability = $1,200,000 - $600,000

Pension liability = $600,000

Therefore the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021 is $600,000