A Company Has a Defined Benefit Pension Liability of $750,000

question 51

Essay

A company has a defined benefit pension liability of $750,000 at the beginning of the year. The company contributes $2,500,000 to the pension during the year and records a pension expense of $2,200,000.
Required:
Determine the value of the defined benefit pension liability at year-end.

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Definitions:

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsive behavior.

Lack Of Attention

A deficiency in the ability to focus or concentrate on a task or the present moment, often leading to difficulties in learning or completing tasks.

Hyperactivity

Excessive restlessness and overactivity; one of the primary characteristics of attention-deficit/hyperactivity disorder (ADHD). Not to be confused with misbehavior or with high activity levels that are normal during childhood.

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.