A Company's Defined Benefit Pension Plan Incurs Current Service Cost

question 6

Multiple Choice

A company's defined benefit pension plan incurs current service cost of $4,000,000. This pension plan's assets generated $2,500,000 of income, which exceeded expectations by $500,000. Pension obligations incurred interest cost of $1,500,000, which were $700,000 below expectations. During the year, the company increased benefits in the pension plan and incurred $800,000 for past service cost.

• A)$5,000,000
• B)$3,800,000
• C)$4,600,000
• D)$5,600,000

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Definitions:

Cultural Products

Objects, symbols, and practices that represent the shared beliefs, values, and knowledge of a culture, including literature, music, art, and rituals.

Cultural Differences

The variations in the beliefs, values, behaviors, customs, and norms between different societies or cultures.

Time Period

A distinct, measurable duration of time, during which events, processes, or conditions occur or develop.

Customs

Customs are traditional and widely accepted ways of behaving or doing something that are specific to a particular society, place, or time.