According to SFAS No

question 30

Multiple Choice

According to SFAS No. 87, which of the following is never recorded as a component of annual pension cost?

• A) Amortization of the intangible asset recorded as the offset to the minimum pension liability
• B) Amortization of prior service cost
• C) Amortization of gains and losses
• D) Amortization of the transition amount

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Definitions:

Anticipated Annual Incremental

Expected yearly increases in revenue or benefits as a result of a particular action or investment, not considering future inflation or changes in currency value.

Salvage Value

The anticipated market value of an asset after its period of utility has ended.

Payback Period

The duration required for an investment to produce income or cash flow that matches the investment's initial cost.

Incremental Net

The net change in financial outcomes resulting from a particular decision or action, considering only the relevant costs and benefits.