A Company Has a Defined Benefit Pension Asset of $1,050,000

question 56

Essay

A company has a defined benefit pension asset of $1,050,000 at the end of the year.The company contributes $2,500,000 to the pension during the year and records a pension expense of $2,200,000.
Requirement:
Determine the value of the defined benefit pension liability at the beginning of the year.

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Definitions:

Federalists

Federalists were supporters of the ratification of the U.S. Constitution, favoring a strong centralized government, and were part of the first American political party in the late 18th century.

National Government

The political authority that governs an entire nation, typically consisting of executive, legislative, and judicial branches.

Institutional Incentive

Motivations or rewards structured within organizations or systems, encouraging particular patterns of behavior among their participants or members.

Virginia Plan

A suggestion from delegates from Virginia for a two-chambered legislative body during the creation of the United States Constitution in 1787.