Exhibit 20-3 the Grace Company Adopted a Defined Benefit Pension

question 58

Multiple Choice

Exhibit 20-3 The Grace Company adopted a defined benefit pension plan on January 1, 2010, and prior service credit was granted to employees.The present value of those benefits was calculated to be $1, 351, 800 at that date.The service cost is funded in full at the end of each year, plus an additional amount of $220, 000 is funded each year-end.The unrecognized prior service cost is being amortized by the straight-line method over the remaining 10-year service life of the company's active employees.Additional information relating to the company's pension plan is presented below:
$\begin{array}{lll}&2010&2011\\\text { Service cost (annual) } & \$ 95,000 & \$ 105,000 \\\text { Unrecogrized prior service cost } & & \\\text { amortization } & 135,180 & 135,180 \\\text { Interest cost } & 10 \% & 10 \% \\\text { Expected (and actual) return on plan assets } & 10 \% & 10 \%\end{array}$
- Refer to Exhibit 20-3.What is the pension expense for 2010?

• A)$ 95, 000
• B)$230, 180
• C)$315, 000
• D)$365, 360

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Definitions:

Interactive Dialogue

A reciprocal communication process in which participants exchange information, feelings, and meaning through verbal and non-verbal messages.

Narrative Therapists

Practitioners of a therapeutic approach that seeks to help patients identify their values and the skills associated with them in order to live these values so they can effectively confront current and future problems.

Dominant Discourses

The prevalent narratives or ways of thinking in a given society that shape perceptions, behaviors, and policies.

Dialogue of Discovery

A conversational process in therapy where the therapist and client explore issues, values, and perspectives to uncover insights and solutions.