Exhibit 19-01Marley Co. has an underfunded prepaid/accrued pension cost of $2,000 (debit balance) at December 31, 2015. The following information pertains to 2016:
Pension expense$320,000
Projected benefit obligation, December 31, 2015840,000
Contributions330,000
Plan assets (fair value), December 31, 2015810,000
Refer to Exhibit 19-1. The December 31, 2016, adjusting entry should be
A. Other Comprehensive Income 30,000 Accrued/Prepaid Pension Cost 30,000
B. Accrued/Prepaid Pension Cost 30,000 Other Comprehensive Income 30,000
C. Other Comprehensive Income 42,000 Accrued/Prepaid Pension Cost 42,000
D. Accrued/Prepaid Pension Cost 40,000 Other Comprehensive Income 40,000
Answer: C
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