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Brief Exercise 20-10 Monty Corp. has three defined benefit pension plans as follows. Pension Assets (at...

Brief Exercise 20-10 Monty Corp. has three defined benefit pension plans as follows. Pension Assets (at Fair Value) Projected Benefit Obligation Plan X $632,000 $461,000 Plan Y 962,000 657,000 Plan Z 532,000 763,000 How will Monty report these multiple plans in its financial statements? Pension Asset $ Pension Liability $ Click if you would like to Show Work for this question: Open Show Work

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Answer #1

Under defined benefit pension plans, either Net Assets are shown if they are higher, or Net Liabilities(Or Obligations are shown if they are higher in the Financials.

Hence in the given case:

For Plan X: Net Assets = $632000-$461000= $171000

For Plan Y: Net Assets = $962000-$657000= $305000

For Plan Z: Net Liabilities = $763000-$532000=$231000

Now if a summarised report is to be shown in Financials for all the plans, then Net Assets of $245000 will be shown.

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