Dawson Corporation, a publicly traded company, implemented a defined benefit pension plan for its employees on January 2, 2004. The following data are provided for 2006 and as of December 31, 2006:
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Projected benefit obligation |
$350,000 |
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Accumulated benefit obligation |
320,000 |
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Plan assets at fair value |
362,000 |
|
Pension cost for 2006 |
100,000 |
|
Employer’s contribution for 2006 |
95,000 |
What amount should Dawson report for the pension plan on its December 31, 2006 balance sheet?
- A current liability of $5,000.
- No asset or liability.
- A noncurrent asset of $12,000.
- A noncurrent asset of $42,000.