At the End of the Current Year, Kennedy Co

question 75

Multiple Choice

At the end of the current year, Kennedy Co.has a defined benefit obligation of £335,000 and pension plan assets with a fair value of £245,000.The amount of the vested benefits for the plan is £225,000.Kennedy has an accumulated actuarial gain of £8,300.What account and amountrelated to its pension plan will be reported on the company's statement of financial position?

• A)Pension liability of £74,300
• B)Pension liability of £90,000
• C)Pension asset of £233,300
• D)Pension asset of £110,000

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Definitions:

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by observing and measuring the effect of varying an independent variable.

Dosage

The size or frequency of a dose of a medicine or drug that has been recommended.

Placebo

A compound that lacks any medicinal benefits, employed as a control when evaluating novel medications.

Experimental Drug

A pharmaceutical compound undergoing clinical trials to assess its safety and efficacy before it can be approved for general use.