Current Service Cost for a Defined Benefit Pension Plan Amounted

question 53

Multiple Choice

Current service cost for a defined benefit pension plan amounted to $1,000,000. Expected income on the pension plan's assets amounted to $7,500,000, while actual income was $7,800,000. The interest on the pension obligation was $9,000,000, which matched the actuarial estimates. No past service costs arose during the year. Given this information the pension expense for the year was:

• A)$500,000
• B)$2,200,000
• C)$2,500,000
• D)$1,000,000

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Definitions:

Anarchist

An individual who opposes organized government and seeks to promote a society based on voluntary cooperation and free association of individuals and groups.

Fascist

Pertaining to or advocating for a form of far-right, authoritarian ultranationalism characterized by dictatorial power, suppression of opposition, and strong regimentation of society and the economy.

Democracy

A political system characterized by citizen participation in the political process.

Anarchy

A state of society without government or law, where there is no centralized authority, often implying disorder due to the absence of government control.