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Business, 05.09.2019 23:20 toxsicity

Payne, inc., a nonpublicly traded company, implemented a defined benefit pension plan for its employees on january 2, year 2. the following data are provided for year 2, as of december 31, year 2:
fair value of plan assets: $78,000
projected benefit obligation: $103,000
net periodic pension cost: $90,000
employer's contribution: $70,000
what amount should payne record as pension liability at december 31, year 2?
a. $0
b. $25,000
c. $20,000
d. $45,000

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