Question - The following information pertains to Kane Co.'s defined benefit pension plan for 20X8:
Pension Asset/Liability Jan. 1 $2,000 Db.
Service Cost 19,000
Interest Cost 38,000
Actual Return on Plan Assets 22,000
Amortization of Unrecognized
Prior Service Cost 52,000
Employer Contributions 40,000
Expected Return on Plan Assets 18,000
In its December 31, 20X8 balance sheet, what amount should Kane report as pension asset/liability?
a. $10,000 credit
b. $12,000 debit
c. $7,000 debit
d. $8,000 credit