Given the Following Information,what Are the (Unadjusted )Operating Profits and Operating

question 10

Multiple Choice

Given the following information,what are the (unadjusted ) operating profits and operating profits adjusted for pension liabilities and assets? (The amortized prior-year service cost and the amortization of losses are both zero. ) Operating revenues = $1,000
Operating costs = $600
Pension interest cost = $700
Expected return on pension plan assets = $500
Pension service cost = $150

• A)Unadjusted operating profits = $600;adjusted operating profits = $400.
• B)Unadjusted operating profits = $400;adjusted operating profits = $600.
• C)Unadjusted operating profits = $400;adjusted operating profits = $750.
• D)Unadjusted operating profits = $600;adjusted operating profits = $750.

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