On January 1, 2018,Gillock Climbing Academy Instituted a Defined Benefit

question 137

Multiple Choice

On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018.
- An employer reports the components of pension expense outside the subtotal of income from operations with the exception of:

• A) service cost.
• B) interest cost.
• C) actual return on plan assets.
• D) expected return on plan assets.

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Definitions:

Significantly More

A phrase often used to indicate a substantially greater amount, degree, or extent in comparison to something else.

Alcohol-Related Physical Illnesses

Health problems directly associated with the excessive consumption of alcohol.

Societal Acceptance

The general approval, tolerance, or endorsement by society of behaviors, practices, or norms, influencing individual and group attitudes and actions.

Heavy Drinking

Refers to consuming alcohol in large quantities that can lead to alcohol abuse or dependence.