On January 1, 2014, a Company Had $84,000 of Unrecognized

question 20

Multiple Choice

On January 1, 2014, a company had $84,000 of unrecognized prior service cost. The years-of-future-service method of amortization is used. The company has seven employees, as indicated below:

What amount of prior service cost should be included in pension expense for 2014?

• A) $ 2,000
• B) $ 9,333
• C) $12,000
• D) $14,000

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Definitions:

Hypothetical-Deductive Reasoning

The ability to consider propositions and probabilities, generate and systematically test hypotheses, and draw conclusions.

Metacognition

The awareness and understanding of one's own thought processes, allowing for the regulation and optimization of learning.

Multidimensional Thinking

The ability to perceive, analyze, and understand situations from multiple perspectives and dimensions.

Relativistic Terms

Concepts or words that are understood in relation to other concepts or contexts, and whose meanings can vary depending on those relationships.