Basic Technology Corporation has a noncontributory, defined-benefit pension plan. The following information relating to this plan was available at December 31, 2011, the end of the company's accounting period:
Required:
1. Compute the funded status of the PBO at the end of 2011.
2. Compute the net periodic pension expense for 2011.
3. Prepare the 2011 journal entry to record pension expense and funding of the plan.
Definitions:
Patent Expire
The conclusion of the legal period during which an inventor exclusively holds the rights to their invention, allowing others to make, use, or sell the invention without permission.
Granted
Acknowledgment that something is provided or allowed, often officially or formally.
Compulsory Licence
A license granted to a third-party by the government to use a patented invention without the consent of the patent holder.
Royalty Fee
A payment made to an owner for the use of their property, typically intellectual property or natural resources.
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