Question

Novak Corporation has the following balances at December 31, 2017. Projected benefit obligation $2,621,000 Plan assets at fair value 2,047,000 Accumulated OCI (PSC) 1,031,000 What is the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017

Answer 1

$574,000

Step-by-step explanation:

Calculation for the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017

Using this formula

Pension liability=Projected benefit obligation - Plan assets

Let plug in the formula

Pension liability=$2,621,000-2,047,000

Pension liability=$574,000

Therefore the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017 will be $574,000