The Following Facts Apply to Questions

question 15

Multiple Choice

The following facts apply to questions :
XYZ Company,a calendar-year entity,amends its defined benefit pension plan on January 1,2010 and must recognize the increase in past service costs of its vested and non-vested employees as of that date in the calculation of its net 2010 pension expense (or revenue) . The pertinent facts as of January 1,2010 are:
-Calculate the past service costs included in 2010 net pension expense (or revenue) under IAS 19.

• A)$5,100
• B)$5,400
• C)$600
• D)$7,000

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Definitions:

Stock Market Crash

A rapid and severe downturn in stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.

Great Depression

A severe worldwide economic downturn that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929 and leading to widespread unemployment, severe deflation, and significant declines in economic output.

Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.

Division Of Labor

The provision of specialized jobs.