Answer:
c. $130,000
Explanation:
The net pension liability is the difference between the total pension liability (the present value of projected benefit payments to employees based on their past service) and the assets (mostly investments reported at fair value) set aside to pay current employees, retirees, and beneficiaries.
To calculate this:
Net Pension Liability = Projected benefit Obligation - Plan assets at fair value
= $ 785,000 - $655,000
= $130,000
Therefore Van Nuen's net pension liability at December 31, 2018 can be reported as $130,000.
Answer:The answer is C $130,000
Explanation:
Using the formula
Net pension liability = Projected benefit obligation - Fair value of the plan Asset
Projected benefit obligation = $785,000
Fair value of the plan Asset = $655,000
785,000 - 655,000
= $130,000
