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John Company Adopted a Defined Benefit Pension Plan on January

Question 94

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John Company adopted a defined benefit pension plan on January 1, 2014, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2014 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2014 is presented below:

John Company adopted a defined benefit pension plan on January 1, 2014, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2014 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2014 is presented below: What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2014 pension expense and funding at December 31, 2014? A) $ 1,200 B) $48,000 C) $87,000 D) $94,800

What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2014 pension expense and funding at December 31, 2014?


A) $ 1,200
B) $48,000
C) $87,000
D) $94,800

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