The Susan Company Has a Defined Benefit Pension Plan for Its

The Susan Company has a defined benefit pension plan for its employees.The following information pertains to the pension plan: $\begin{array}{ll}\text { Projected benefit obligation, December } 31,2010 & \$ 1,680,000 \\\text { F air value of plan assets, December 31, 2010 } & 1,739,000 \\\text { Accrued/prepaid pension cost (asset) , December 31, 2009 } & 51,300\end{array}$
The December 31, 2010 adjusting journal entries include a

A) debit to Accrued/Prepaid Pension Cost for $7, 700
B) debit to Other Comprehensive Income for $7, 700
C) credit to Other Comprehensive Income for $110, 300
D) credit to Accrued/Prepaid Pension Cost for $110, 300

Correct Answer:

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