At the beginning of the year, Lancaster Company's actuaries projected an expected rate of return on plan assets of $60,000. The actual rate of return was $48,000. What entry is made to account for the difference this year? OA Debit Credit Other comprehensive income 12,000 (equity) Pension expense 12,000 OB. No entry is needed; the expected rate of return is only an estimate. 00 O D. Pension expense Other comprehensive income (equity) Net pension asset Debit Credit 12,000 12,000 Debit Credit 12,000 Penson expense 12,000 E Debit Credit Pension expense 12,000 Net penson liability 12,000

At the beginning of the year, Lancaster Company's actuaries projected an expected rate of return on plan assets of $60,000. The actual rate of return was $48,000. What entry is made to account for the difference this year? OA Debit Credit Other comprehensive income 12,000 (equity) Pension expense 12,000 OB. No entry is needed; the expected rate of return is only an estimate. 00 O D. Pension expense Other comprehensive income (equity) Net pension asset Debit Credit 12,000 12,000 Debit Credit 12,000 Penson expense 12,000 E Debit Credit Pension expense 12,000 Net penson liability 12,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6RE

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