Account For Pension And Postretirement Benefits Practice Test

A for-profit entity sponsors a defined benefit pension plan. On January 1, 20X5, the plan is amended to increase benefits for prior service, resulting in prior service cost of $600,000. The average remaining service period of active employees expected to receive benefits is 10 years. Under FASB ASC 715, what is the appropriate accounting treatment for the plan amendment in 20X5 (ignore tax effects)?

A for-profit entity with a defined benefit pension plan reports the following at December 31, 20X5 (in millions): projected benefit obligation (PBO) $52.0 and fair value of plan assets $47.5. At December 31, 20X4, the PBO was $49.0 and plan assets were $46.0. Under FASB ASC 715, what adjustment is needed at December 31, 20X5 to recognize the funded status of the plan on the statement of financial position (ignore tax effects)?