On December 31,2016,the Following Pension-Related Data Were Available for CPS

question 105

Essay

On December 31,2016,the following pension-related data were available for CPS Industries' noncontributory,defined benefit pension plan:

Required:
1)Prepare the 2016 journal entry to record pension expense.
2)How will the statement of comprehensive income be affected by any 2016 gains and losses?

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Definitions:

Opportunity Costs

Opportunity costs represent the benefits or values that are forfeited as a result of choosing one alternative over another.

Guns

Firearms designed to discharge projectiles at high speeds, utilized for a variety of purposes including defense, hunting, and sporting activities.

Butter

A dairy product made by churning cream or milk, used as a spread or in cooking.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to an economy or society.