Code: A =Amortization of Unrecognized Prior Service Cost

question 4

Multiple Choice

Code:
A =amortization of unrecognized prior service cost
B =interest cost
C =gain or loss (to the extent recognized)
D =service cost
E =expected return on plan assets
F =pension expense

Which equation would be correct for the calculation of pension expense?

• A) F = D + B - E + A ? C
• B) F = B + D ? A ? C + E
• C) F = D - B ? C - E ? A
• D) F = B ? C - E - D ? A