Exercise:
Projected benefit obligation 930,000
Accumulated benefit obligation 865,000
Plan assets (at fair value) 700,000
Vested benefits 200,000
Prior service cost not yet recognized in
pension expense 120,000
Gains and losses 0
Instructions:
Question 1: Present the schedule reconciling the funded status with the asset/liability reported on the balance sheet. Assume no asset or liability existed at the beginning of period for pensions on Jean Burr Company's balance sheet.
Question 2: Assume the same facts as in (a) except that Jean Burr Company has an unrecognized loss of $16,000during 2007.
Question 3: Explain the rationale for the treatment