Premier Sports Inc Has a Beginning PBO Balance of $615,000

question 72

Multiple Choice

Premier Sports Inc has a beginning PBO balance of $615,000 and a beginning market-related value of plan assets of $550,000. The net actuarial gain at the beginning of the period is $89,000 and the average employee base has a remaining service life of 20 years. What is the corridor?

• A) $61,500
• B) $55,000
• C) $27,500
• D) $58,250

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Definitions:

Income Effect

The income effect describes how changes in consumers' income impact their purchasing choices, typically affecting the quantity of goods consumed.

Marginal Utility

The further benefit or pleasure derived by consuming an extra unit of a good or service.

Utils

A theoretical unit of measurement used in economics to quantify the level of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Rational

Describes a decision maker who chooses the available option that leads to the outcome he or she most prefers.