Assume That at the Beginning of the Current Year, a Company

question 101

Multiple Choice

Assume that at the beginning of the current year, a company has a net gain-AOCI of $25,000,000. At the same time, assume the PBO and the plan assets are $200,000,000 and $150,000,000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year?

• A) $3,000,000.
• B) $500,000.
• C) $2,500,000.
• D) $1,500,000.

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