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31 May, 22:51

At the end of the current period, Pronghorn Inc. had a projected benefit obligation of $369,000 and pension plan assets (at fair value) of $317,000. What are the accounts and amounts that will be reported on the company's balance sheet as pension assets or pension liabilities

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  1. 1 June, 02:48
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    The correct answer is Pension liability account of amount $52,000.

    Explanation:

    According to the scenario, the given data are as follows:

    Projected benefits = $369,000

    Pension plan assets = $317,000

    So, we can check for the accounts and amounts by using following formula:

    Accounts and amounts = Pension plan assets - Projected benefits

    = $317,000 - $369,000

    = - $52,000

    Here, Negative sign indicates the liability.

    Hence, it shows pension liability account of $52,000.
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