Items 1 and 2 are based on the following:
The following data pertains to Hall Co.’s defined-benefit pension plan at December 31, 2006:
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|
Unfunded accumulated 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 2006. Assume Hall is a nonpublicly traded company that has not elected to early adopt SFAS 158 for 2006.
At December 31, 2006, what amount should Hall record as additional pension liability?
- $ 5,000
- $13,000
- $17,000
- $25,000
In its December 31, 2006 statement of stockholders’ equity, what amount should Hall report as excess of additional pension liability over unrecognized prior service cost?
- $ 5,000
- $13,000
- $17,000
- $25,000