Feinberg,Inc

question 7

Essay

Feinberg,Inc. ,provides a noncontributory defined benefit plan for its 200 employees.Information from the company's pension footnote for the year ended December 31,2013,and partial information for the year ended December 31,2014,are given below:
The company's actuary indicated that the settlement rate and expected rate of return on plan assets were both 8% for 2013 and 2014.The company contributed $221,250 to the plan at the end of 2014.Service cost for 2014 was $125,000.
On January 1,2013,the company amended its plan to grant retroactive credit for prior service rendered by employees prior to the amendment.This amendment increased unrecognized prior service cost by $125,000 at that date.The prior service cost is being amortized over the average remaining service life of the employees affected by the amendment.The average remaining service life of the workforce in each year has been constant at 10.5 years.

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Definitions:

Pupil

The central, circular opening in the iris of the eye, which regulates the amount of light that enters the eye to reach the retina.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter and size of the pupil and thus the amount of light reaching the retina.

Visible Light Waves

Electromagnetic waves that are visible to the human eye, which perceive them as colors.

Pupil

The adjustable opening in the center of the eye that allows varying amounts of light to enter.