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

question 33

Multiple Choice

Assume that at the beginning of the current year, a company has a net gain-AOCI of $25,000,000. At the same time, assume the PBO and the plan assets are $200,000,000 and $150,000,000, 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)$3,000,000.
• B)$ 500,000.
• C)$2,500,000.
• D)$1,500,000.[$25,000,000 ($200,000,000 10%)]/10 = $500,000

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Definitions:

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A guarantee given to the purchaser of an item by the seller, promising repair or replacement in case of defects within a certain period of time.

Codicil

A supplement or addition made to alter, explain, or otherwise modify a will, without revoking it entirely.

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A fully operational fire suppression system installed in buildings that activates automatically in response to detectable signs of fire, such as heat or smoke.