D is corrent. ASC Topic 715 requires the recognition of pension liability if the projected benefit obligation exceeds the fair value of the plan assets. The adjustment needed is the amount to bring the liability equal to $7,500,000 ($14,500,000 less $7,000,000). There is currently $200,000 in the unfunded pension asset (liability) account. Therefore, an adjusting entry is made for $7,300,000.
A is incorrect. ASC Topic 715 requires the recognition of pension liability if the projected benefit obligation exceeds the fair value of the plan assets. The adjustment needed is the amount to bring the liability equal to $7,500,000 ($14,500,000 less $7,000,000). There is currently $200,000 in the unfunded pension asset (liability) account. Therefore, an adjusting entry is made for $7,300,000.
B is incorrect. ASC Topic 715 requires the recognition of pension liability if the projected benefit obligation exceeds the fair value of the plan assets. The adjustment needed is the amount to bring the liability equal to $7,500,000 ($14,500,000 less $7,000,000). There is currently $200,000 in the unfunded pension asset (liability) account. Therefore, an adjusting entry is made for $7,300,000.
C is incorrect. ASC Topic 715 requires the recognition of pension liability if the projected benefit obligation exceeds the fair value of the plan assets. The adjustment needed is the amount to bring the liability equal to $7,500,000 ($14,500,000 less $7,000,000). There is currently $200,000 in the unfunded pension asset (liability) account. Therefore, an adjusting entry is made for $7,300,000.
|
