The Following Information Relates to the Defined Benefit Pension Plan

question 66

Multiple Choice

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

Using the information above, service cost for the year would be

• A) $59,000.
• B) $94,000.
• C) $129,000.
• D) $390,000.

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Definitions:

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Offer

A tentative promise to do something if another party consents to do what the first party requests.

Telephone

A telecommunications device that allows two or more users to conduct a conversation when they are too far apart to be heard directly.

Invitation To Treat

An Invitation to Treat is a legal expression signaling the initiation of negotiations, inviting offers which can then be accepted or rejected by the party issuing the invitation.