Daikon Ltd

question 19

Multiple Choice

Daikon Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for calendar 2020. The corporation uses ASPE. For 2020, the current service cost is $ 180,000. The interest rate on the liability is 10% and the actual rate of return on plan assets is 9%. The pension expense to be reported for 2020 is

• A) $ 265,500.
• B) $ 231,000.
• C) $ 216,000.
• D) $ 180,000.

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Definitions:

Breach Of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.

Mistake In Meaning

A misunderstanding or misinterpretation of terms or conditions in a contract that can affect the validity of the agreement.

Mistake Of Law

A misunderstanding or incorrect interpretation of the law by an individual, which does not generally excuse compliance.

Zoned

Pertains to areas designated for specific uses, such as residential, commercial, or industrial, under local land use regulations.