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Question: (Pension Terminology) The following items appear on Brueggen Company's financial statements.
1. Under the caption Assets: Pension asset/liability.
2. Under the caption Liabilities: Pension asset/liability.
3. Under the caption Stockholders' Equity: Prior service cost as a component of Accumulated Other Comprehensive Income.
4. On the income statement: Pension expense.
Instructions: Explain the significance of each of the items above on corporate financial statements.
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