You Have Been Given a Piece of Tree Trunk, Sawed

question 86

Multiple Choice

You have been given a piece of tree trunk, sawed transversely, and are told to examine its structure.You don't see any growth rings and thus conclude that this tree grew in the tropics.You base this conclusion on the fact that only trees from temperate areas have the rings, which are formed when

• A) heartwood cells alternate with sapwood cells.
• B) resin is deposited in rings in the stem.
• C) cork is deposited in rings in the stem.
• D) phelloderm cell size varies with the season.
• E) xylem cell size varies with the season.

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Definitions:

Service Cost

The portion of the pension expense that is recognized for the increase in pension benefits related to employee services of the current period.

Unrecognized Prior Service Cost

Costs not immediately recognized on the income statement related to retroactive benefits granted to employees in a pension plan amendment.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Defined Benefit Pension Plan

A type of pension plan where an employer commits to pay a specified pension amount to the retiree, based on factors like salary history and duration of employment.