At the end of the current year, Kennedy Co. has a defined benefit obligation of $335,000 and pension plan assets with a fair value of $245,000. The amount of the vested benefits for the plan is $225,000. Kennedy has an actuarial gain of $8,300. What account and amount(s) related to its pension plan will be reported on the company’s statement of financial position?

The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.

Explanation:

The difference between defined benefit obligation and fair value of plan assets is recorded on a balance sheet.

Defined benefit obligation is $335,000 which is higher than the fair value of plan assets of $245,000. Hence, the net result is pension liability.

Pension liability = defined benefit obligation - fair value of plan assets = $335,000 - $245,000 = $90,000.

The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.

Actuarial gain is part of pension expense. Vested benefits amount is recorded in the notes to account.

answernaturalistic observation;