Use the Following Information for Questions

question 46

Multiple Choice

Use the following information for questions
The following information for Cooper Enterprises is given below:
There was no accumulated OCI at January 1, 2016.The average remaining service life of employees is 10 years.
-What is the amount that Cooper Enterprises should report as its pension liability on its statement of financial position as of December 31, 2016?

• A)$100,000
• B)$15,000
• C)$105,000
• D)$200,000

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Definitions:

LIFO Method

Last-In, First-Out method, an inventory valuation technique where the most recently produced or purchased items are the first to be used or sold.

Gross Profit

Gross profit is the financial measure calculated by subtracting the cost of goods sold from revenue, indicating the efficiency in production and pricing.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold, known as Last-In, First-Out.

FIFO Method

A method of inventory valuation where the first items purchased are the first ones to be sold, standing for First In, First Out.