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:

Plasma

The liquid component of blood in which blood cells are suspended, consisting mostly of water and proteins.

Agglutination

The clumping together of particles, typically cells or proteins, that occurs when an antigen is mixed with its corresponding antibody.

Erythrocytes

Red blood cells responsible for carrying oxygen and carbon dioxide throughout the body.

Universal Donors

Refers to individuals with O-negative blood type who can donate blood to recipients of all blood types without causing adverse reactions.