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

Accumulated benefit obligation

320,000

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?

  1. A current liability of $5,000.
  2. No asset or liability.
  3. A noncurrent asset of $12,000.
  4. A noncurrent asset of $42,000.