What Is the Total Pension Expense for the Following Plan

question 11

Multiple Choice

What is the total pension expense for the following plan after 5 years? "The plan requires the company to contribute $500 for each of its 1,000 employees.The plan hopes to accumulate enough funds so that retirees receive $20,000 in the future; the company has no obligation to guarantee the investment returns."

• A)$2,500
• B)$100,000
• C)$2,500,000
• D)$20,000,000

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Definitions:

Acute Care

A form of healthcare designed to treat short-term, urgent medical conditions.

Basin Bath

A method of bathing that involves using a basin filled with water and soap, commonly used for bedridden patients.

Nail Care

Practices and procedures performed to maintain the health and aesthetics of fingernails and toenails.

Fingernails

Hardened keratin plates covering the dorsal aspect of the terminal phalanges of fingers, playing roles in protection, sensation, and manipulation.