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

question 97

Multiple Choice

Assume that at the beginning of the current year, a company has a net gain-AOCI of $60,000,000. At the same time, assume the PBO and the plan assets are $300,000,000 and $450,000,000, 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)$6,000,000.
• B)$15,000,000.
• C)$1,500,000.
• D)$7,500,000.[$60,000,000 ($450,000,000 10%)]/10 = $1,500,000

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Definitions:

Criminal Guilt

The determination that an individual has committed a crime as proven in a court of law, following a legal process.

Civil Trial

A legal proceeding in which disputes between parties are resolved by a judge or a jury, not involving criminal charges.

Entrapment

A practice whereby a law enforcement agent induces a person to commit a criminal offense that the person would have otherwise been unlikely to commit.

Controlled Substance

A drug or chemical whose manufacture, possession, or use is regulated by a government due to potential for abuse or addiction.