Presented Below Is Pension Information Related to Power Corp The Amount of Pension Expense to Be Reported for 2012

question 5

Multiple Choice

Presented below is pension information related to Power Corp. for the year 2012: $\begin{array}{llcc} \text {Service cost } &\$24,000 \\ \text { Interest on projected benefit obligation } &18,000\\ \text { Amortization of prior se1vice cost che to increase in benefits } &4,000\\ \text { Expected return on plan assets } &6,000\\\end{array}$
The amount of pension expense to be reported for 2012 is

• A) $36,000
• B) $48,000
• C) $54,000
• D) $40,000

---

Definitions:

Equity-Financed

Pertains to the method of raising capital by selling company shares rather than borrowing funds.

Earnings Per Share

A company's net profit divided by the number of its shares outstanding, indicating how much money each share of stock earns.

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic benefits, expand market reach, or gain efficiencies.