Please help!
The following information pertains to Hall Co.’s defined-benefit pension plan at December 31, 20X4:
Unfunded projected benefit obligation $25,000
Unrecognized prior service cost 12,000
Net periodic pension cost 8,000
Hall made no contributions to the pension plan during 20X4.
In its December 31, 20X4, statement of stockholders' equity, what amount should Hall report as excess of additional pension liability over unrecognized prior service cost?
Ans: $5000
Correct! Hall has a minimum pension liability that is equal to the unfunded projected benefit obligation of $25,000. Since Hall made no contributions to the plan during 20X4, however, an accrued pension liability of $8,000 will already be recognized. As a result, Hall will need to record an additional liability for the difference of $17,000. This will usually be recorded with a credit to an additional pension liability of $17,000 and a debit to a deferred pension asset of $17,000. The amount recognized as a deferred asset is limited to the balance of unrecognized prior service cost, or $12,000 in this case. The excess of $5,000 is reported in a stockholders' equity account.
Here is the explanation. Can anyone please translate all those into english? lol
REG 90
FAR 95
AUD 98
BEC 84
.