Rose Corporation, a publicly traded company, implemented a defined benefit pension plan for its employees on January 2, 2005. The following data are provided for 2006 and as of December 31, 2006:


Projected benefit obligation


Accumulated benefit obligation


Plan assets at fair value


Pension cost for 2006


Pension contribution for 2006


Assume that as of January 1, 2006, Rose’s pension plan was fully funded, and there were no recorded pension assets or liabilities on the balance sheet. Ignoring tax effects, which of the following entries would be needed to properly record the funding status of Rose’s pension plan at December 31, 2006?

  1. A debit to noncurrent pension asset of $2,000.
  2. A debit to prepaid pension for $150,000.
  3. A credit to noncurrent pension liability for $40,000.
  4. A debit to other comprehensive income for $38,000.