Zenith Company, a Calendar-Year Entity, Amends Its Defined Benefit Pension

question 21

Multiple Choice

Zenith Company, a calendar-year entity, amends its defined benefit pension plan on January 1, 2019 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 2019 pension expense (or revenue) . The pertinent facts as of January 1, 2019 are: Calculate the past service costs included in 2019 net pension expense (or revenue) under IAS 19.

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

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Definitions:

Leisure

Free time available to a person away from duties, work, or other compulsory activities.

Nonlabor Income

Income received that does not originate from employment or work efforts, such as dividends, interest, or rental income.

Wage Rate

The amount of money that is paid to a worker per unit of time or per unit of output, often discussed in the context of labor markets.

Budget Equation

A mathematical representation of the constraint that the total value of goods and services a consumer can purchase is limited by their income.