The Following Information Relates to the Defined Benefit Pension Plan

question 74

Multiple Choice

The following information relates to the defined benefit pension plan of the Summersville Company for the year ending December 31,2014: The net amount of the gain or loss component to be included in pension cost for 2014 would be

• A) $8,500
• B) $32,500.
• C) $47,500.
• D) $77,500.

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Definitions:

Part

A component or piece that combines with other pieces to form a whole machine, system, or object.

Foreign Demand

The desire and willingness of buyers from other countries to purchase goods and services.

Dollar Depreciates

A decrease in the value of the U.S. dollar relative to other currencies in the foreign exchange market, making foreign goods more expensive and U.S. exports cheaper.

Gold Standard

A monetary system in which the value of a currency is directly linked to a specified amount of gold, allowing currency to be exchanged for gold at the fixed rate.