The Following Information Relates to the Defined Benefit Pension Plan

question 2

Multiple Choice

The following information relates to the defined benefit pension plan of the McDonald Company for the year ending December 31, 2011:

The net periodic pension cost reported in the income statement for 2011 would be

• A) $11,500.
• B) $24,000.
• C) $36,500.
• D) $59,000.

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Definitions:

Clarifying Additive

A substance added to liquids to remove or to reduce the appearance of cloudiness or turbidity.

Polypropylene

A thermoplastic polymer used in a wide variety of applications, known for its toughness, flexibility, and resistance to various chemical solvents, acids, and bases.

Millad NX8000

A highly efficient clarifier used in the production of transparent polypropylene plastics, enhancing clarity and physical properties.

Acetonide

An acetonide is a ketal formed from the diol (a molecule with two hydroxyl groups) and acetone, often used as a protective group in organic synthesis.