The Following Information Relates to the Defined Benefit Pension Plan

question 78

Multiple Choice

The following information relates to the defined benefit pension plan of Wendy Corporation for the year ending December 31, 2012: What is the net pension asset or liability for Wendy corporation in 2012?

• A) $435,000 pension asset
• B) $435,000 pension liability
• C) $425,000 pension asset
• D) $425,000 pension liability

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Definitions:

Community Property

A form of joint property ownership typically between spouses, where assets acquired during the marriage are owned equally by both parties.

Joint Tenancy

is a form of property ownership by two or more persons where each owns an undivided interest, and upon death, the survivor(s) automatically assumes ownership of the deceased's share.

Inheritable Tenancy

A type of tenancy that allows the tenant's rights in the property to be passed on to their heirs.

Community Property

A legal concept in certain jurisdictions that property acquired during marriage is owned jointly by both spouses.