At December 31, 2011, Glover Corporation has the following balances:
Accrued benefit obligation …………………….. $3,400,000
Plan assets at fair value ………………………… 2,420,000
Unrecognized past service cost ………………… 990,000
Determine the account and its balances that should be reported on Glover Corporation’s December 31, 2011 balance sheet if it is using the deferral and amortization approach.
Accrued benefit obligation $3,400,000
Fair value of plan assets 2,420,000
Funded status – net liability 980,000
Unrecognized past service cost (debit) 990,000
Accrued pension asset (debit) $ 10,000
