Cey Company has a defined benefit pension plan. Cey's policy is to fund net periodic pension cost annually, payment to an inc trustee being made 2 months after the end of each year. Data relating to the pension plan for year 5 are as follows: Net pension cost for year 5 Unrecognized prior service cost, 12/31/Y5 Accumulated benefit obligation, 12/31/Y5 Fair value of plan assets, 12/31/Y5 Projected benefit obligation 12/31/Y5 Current $190,000 150,000 480,000 500,000 How much should appear on Cey's balance sheet at December 31, year 5, for pension liability? Noncurrent 500,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cey Company has a defined benefit pension plan. Cey's policy is to fund net periodic pension cost annually, payment to an independent
trustee being made 2 months after the end of each year. Data relating to the pension plan for year 5 are as follows:
Net pension cost for year 5
Unrecognized prior service cost, 12/31/Y5
Accumulated benefit obligation, 12/31/Y5
Fair value of plan assets, 12/31/Y5
Projected benefit obligation 12/31/Y5
How much should appear on Cey's balance sheet at December 31, year 5, for pension liability?
Current
$190,000
$190,000
$0
Noncurrent
$150,000
$330,000
$0
$190,000
150,000
480,000
500,000
500,000
$480,000
Transcribed Image Text:Cey Company has a defined benefit pension plan. Cey's policy is to fund net periodic pension cost annually, payment to an independent trustee being made 2 months after the end of each year. Data relating to the pension plan for year 5 are as follows: Net pension cost for year 5 Unrecognized prior service cost, 12/31/Y5 Accumulated benefit obligation, 12/31/Y5 Fair value of plan assets, 12/31/Y5 Projected benefit obligation 12/31/Y5 How much should appear on Cey's balance sheet at December 31, year 5, for pension liability? Current $190,000 $190,000 $0 Noncurrent $150,000 $330,000 $0 $190,000 150,000 480,000 500,000 500,000 $480,000
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