Refer to Exhibit 20-3.What is the correct balance in Prepaid/Accrued Pension Cost at December 31, 2010?

A) $ 84, 820 debit
B) $ 50, 360 credit
C) $1, 266, 980 credit
D) none of these

Question

Refer to Exhibit 20-3.What is the correct balance in Prepaid/Accrued Pension Cost at December 31, 2010?A) $ 84, 820 debitB) $ 50, 360 creditC) $1, 266, 980 creditD) none of these

Hailey Spoto · Accepted Answer

Final Answer : C, Explanation :  The correct balance in Prepaid/Accrued Pension Cost at December 31, 2010, is $1,266,980 credit. This is calculated as follows:Beginning balance (1/1/10): $1,351,800Service cost (2010): $95,000Prior service cost amortization (2010): $135,180Interest cost (2010): $135,180Expected return on plan assets (2010): $135,180Additional funding: $220,000Ending balance (12/31/10): $1,266,980

Refer to Exhibit 20-3.What is the correct balance in Prepaid/Accrued Pension Cost at December 31, 2010?

A) $ 84, 820 debit
B) $ 50, 360 credit
C) $1, 266, 980 credit
D) none of these

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