Gordon Inc

question 46

Multiple Choice

Gordon Inc.has a defined benefit plan for its employees.The following information relates to this plan: There was no unrecognized prior service cost or unrecognized gains or losses.Gordon's net periodic pension cost for the year was

• A) $968,000.
• B) $940,000.
• C) $900,000.
• D) $880,000.

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Definitions:

Promisor

The person or party in a contract who has made a promise to perform or deliver something to the other party.

Consideration

The value (such as money, a service, or a promise) that is exchanged between parties in a contract.

Unilateral Contract

A promise exchanged for an act.

Nominal Consideration

A token amount in a contract to indicate that a deal has been agreed upon, even if the sum is not reflective of the contract's true value.