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Accounting
Clark Kent Co. approved a prior service obligation of $108,000 on January 1, 2020, which granted retroactive benefit to employees. Assuming an average remaining service period of 10 years for all active plan participants, what is the effect on pension expense of the prior service cost? Note: Indicate a decrease with a negative sign. Increase (decrease) to pension expense

Clark Kent Co. approved a prior service obligation of $108,000 on January 1, 2020, which granted retroactive benefit to employees. Assuming an average remaining service period of 10 years for all active plan participants, what is the effect on pension expense of the prior service cost? Note: Indicate a decrease with a negative sign. Increase (decrease) to pension expense

Intermediate Accounting: Reporting And Analysis
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 2MC
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Analyzing Prior Service Cost

Clark Kent Co. approved a prior service obligation of $108,000 on January 1, 2020, which granted retroactive benefit to employees. Assuming an average remaining service period of 10 years for all active plan participants, what is the effect on pension expense of the prior service cost?

Note: Indicate a decrease with a negative sign.

Increase (decrease) to pension expense  
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