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.

---

Definitions:

Noncollections

Amounts due to a company for goods or services provided that have not been collected.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally.

U.S.GAAP

U.S.GAAP stands for United States Generally Accepted Accounting Principles, which are a set of accounting standards used for financial reporting in the U.S.

Accounts Receivable

Funds that customers owe a company for products or services already received but not yet paid for.