Question

At December 31, 2017, Windsor Corporation had a projected benefit obligation of $819,000, plan assets of $437,000, and prior service cost of $198,000, in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017.

Answer 1

$382,000

Step-by-step explanation:

Calculation to Determine the pension asset/liability at December 31, 2017

Using this formula

Pension asset/liability =Projected benefit obligation - Plan assets

Let plug in the formula

Pension asset/liability=$819,000 - $437,000

Pension asset/liability=$382,000

Therefore the Pension asset/liability at December 31, 2017 will be $382,000